Exploring the Ixigo IPO - Key Details You Need to Know

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  • The fresh issue of Le Travenues Technology Ltd comprises equity shares aggregating up to Rs 120 crores
  • The offer for sale consists of up to 66,677,674 equity shares

With the Lok Sabha elections over, the focus is back on markets and initial public offerings (IPOs). Though markets tumbled sharply following the declaration of results, India's growth story is very much intact. Le Travenues Technology Limited, the parent company of travel aggregator Ixigo, will hit D-street soon.

Le Travenues Technology Limited is a technology company that empowers Indian travellers to plan, book and manage their trips across rail, air, buses and hotels. The company assists travellers in making smarter travel decisions by leveraging artificial intelligence, machine learning and data science-led innovations on its OTA platforms. As per the F&S report, the company is the leading OTA for the next billion users, with a focus on localised content and app features aimed at solving the problems of tier II and tier III travellers.

The company’s IPO consists of a fresh issue and an offer for sale. The fresh issue comprises equity shares aggregating up to Rs 120 crores, while the offer for sale consists of up to 66,677,674 equity shares. The company plans to use the proceeds received from its IPO to:

  • Part-fund its working capital requirements
  • Invest in cloud infrastructure and technology
  • Fund inorganic growth through unidentified acquisitions
  • Meet other strategic initiatives and general corporate purposes

Here are some critical financials of the company:

Total assets (in crores)

Rs 585.925

Rs 538.471

Rs 185.071

Total income (in crores)

Rs 517.573

Rs 384.941

Rs 138.406

Total expenses (in crores)

Rs 484.292

Rs 402.541

Rs 135.699

Diluted earnings per share

0.57

-0.66

0.25

Return on Net Worth

5.74%

-7.15%

24.13%

Particulars FY 23 FY 22 FY 21
Total assets (in crores)
Rs 585.925
Rs 538.471
Rs 185.071
Total income (in crores)
Rs 517.573
Rs 384.941
Rs 138.406
Total expenses (in crores)
Rs 484.292
Rs 402.541
Rs 135.699
Diluted earnings per share
0.57
-0.66
0.25
Return on Net Worth
5.74%
-7.15%
24.13%

Here are the key strengths of the company:

  • It is the leading OTA for the ‘next billion user’ with the highest monthly active users for mobile apps across all key OTAs as of September 30, 2023
  • Established consumer travel brand built with a user-first approach
  • Diversified business model with high operating leverage and organic flywheel
  • Experienced management team with a lean organisation structure

Some of the key strategies the company plans to adopt going forward are:

  • Continue to deepen its penetration and enhance its offerings for the 'next billion user' market
  • Increase monetisation through cross-selling and up-selling
  • Improving operating leverage through investment in deep tech and artificial intelligence
  • Drive value creation through selective strategic partnerships and acquisitions

The travel industry has benefited from direct government policies to increase domestic and inbound travel to India. The government policies are active in all air, road, and rail segments to move the masses across the country in the most efficient manner. As per the World Travel & Tourism Council, Indian travel and tourism spending was Rs 16.5 trillion in the 2023 fiscal with an equally high contribution to GDP at 9.7% for fiscal 2023.

The Indian travel and tourism market for air, road, air and hotels accounts for around Rs 3,808 billion. This is expected to grow to Rs 5,904 billion in the fiscal 2028. The overall travel market is expected to grow at a CAGR of 9%.

Go through the company’s red herring prospectus for an overview of the IPO and its associated risks. Ensure that investing in the IPO fits your overall financial strategy and risk tolerance.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.

Investments in securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI prescribed Combined Risk Disclosure Document prior to investing. Brokerage will not exceed SEBI prescribed limit.

FAQs

Link Intime India Private Limited is the registrar of the IPO.

Axis Capital, DAM Capital Advisors Limited, and JM Financial Limited are the book-running lead managers of this IPO.

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