Ixigo’s initial public offering (IPO) commenced its public issue on Monday, aiming to raise Rs 740.10 crore. The IPO is priced in the range of Rs 88 to Rs 93 per share and will remain open for bidding until June 12, 2024. It comprises a fresh issue of 1.29 crore shares valued at Rs 120 crore and an offer for sale of 6.67 crore shares amounting to Rs 620.10 crore.
Before the IPO, Ixigo secured Rs 333 crore from anchor investors such as Nomura, Morgan Stanley, HDFC Mutual Fund, and others. The company’s valuation at the upper band is a Price/Earnings ratio of 154x and a market-cap/sales ratio of 7.2x post issue, as per a report by Anand Rathi brokerage firm. This valuation, compared to its peers like Yatra Online and Easy Trip Planners, reflects Ixigo’s potential for business growth and profitability expansion.
Retail investors are required to invest a minimum of Rs 14,973, equivalent to a lot size of 161 shares. Qualified institutional buyers (QIBs) and small non-institutional investors (sNIIs) must invest in a minimum of 14 lots (2,254 shares, costing Rs 209,622), while large non-institutional investors (bNIIs) must invest in 67 lots (10,787 shares, totaling Rs 1,003,191).
The book-running process for the IPO is managed by Axis Capital, DAM Capital Advisors (formerly IDFC Securities), and JM Financial, with Link Intime India serving as the registrar. Allotment is expected to be completed by Thursday, June 13, 2024, and shares are set to list on both the BSE and NSE on Tuesday, June 18, 2024.
As of June 10, 2024, the Grey Market Premium (GMP) for the Ixigo IPO stands at Rs 23, indicating an expected listing price of Rs 116 per share, factoring in today’s GMP and the cap price. This implies a potential gain of around 24.73% per share.