IPO Details
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Schedule of LGT Business Connextions IPO
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End date
Allotment of bids
Refund Initiation
Listing on exchange
About LGT Business Connextions IPO
The IPO of LGT Business Connextions Ltd comprises a fresh issue and an offer for sale. The fresh issue consists of up to 23,62,800 equity shares aggregating to ₹26.4634 crores. The offer for sale, on the other hand, comprises 2,62,800 equity shares aggregating to ₹2.9434 crores. It’s a 100% book-built issue.
Objectives of LGT Business Connextions IPO
- To meet the capital expenditure
- To meet working capital requirement
- To meet the general corporate purposes
LGT Business Connextions IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | Up to ₹26.4634 crores |
Offer for Sale | Up to ₹2.9434 crores |
EPS in ₹ for FY 24 | 5.18 |
Industry Outlook
Domestic travel is expected to grow 3 percent annually and reach 19 billion lodging nights per year by 2030. Spending on travel is expected to follow a similar trajectory, with an estimated $8.6 trillion in traveller outlays in 2024, representing roughly 9% of this year’s global GDP. Looking ahead, tourism demand is expected to remain buoyant as supply and demand imbalances unwind. In the near term, the sector continues to navigate uncertainties, while unchecked longer term growth could bring challenges for the sustainability and future of the sector.
Company Information
LGT Business Connextions Ltd operates as a service aggregator in the travel and tourism industry. It connects and aggregates supply from third party hotels, airlines, car rentals, cruise companies and other travel services directly or through third-party aggregators wherever required and offers a wide range of services to its customers as per their desired requirements.
Strengths of LGT Business Connextions IPO
Organisational stability along with management expertise
LGT Business Connextions Ltd has been founded by travel industry experts including promoters of the company having over 3 decades of experience in the travel industry. This indicates its ability to maintain business viability and steer the business through operational hurdles. Its promoters are the guiding force behind the operational and financial decisions of the company.
Service offering
The company is a complete end-to-end service provider of travel related services including domestic and international services, as well as events, meeting, exhibitions, management services provider. Its wide choice of product offerings caters to all the travel needs of an Indian and International traveller. It provides service for all the travel requirements from visa to ticketing, to holiday under one roof.
Scalable business model
The company’s business model is order driven, and comprises optimum utilisation of its resources and thereby enabling it to achieve consequent economies of scale. It can scale upward as per the requirement generated by the company. The business scale generation is basically due to the development of new markets, by adopting aggressive marketing, adding more packages and also by maintaining a consistent quality of the services it offers.
Risks of LGT Business Connextions IPO
-Dependence on order-driven business model
The company is significantly dependent on the sale of some of its services namely MICE Packages and Hotel Bookings. Its aggregate revenue from these services accounted for 99.90% and 99.93% for the period ended September 30, 2024 and for the financial year ended March 31, 2024 respectively. An inability to provide these services may adversely affect its brand loyalty and consequently its business, results of operations, financial condition and cash flows.
- Geographical concentration
The sale of its services is majorly concentrated in the southern states of India. Any adverse developments affecting its operations in such a region could have an adverse impact on its business, financial condition, results of operations and cash flows.
- Reliance on third-party service providers
The company’s operations rely on third-party service providers, vendors, and on other travel suppliers. Any negligence in service provided by them, increase in input costs or failure to maintain strong relationships with them could disrupt its operations which ultimately could adversely affect the quality of the company’s service, pricing, results of operations and financial condition. Further, it doesn’t have long-term agreements with its travel suppliers.
LGT Business Connextions Financials
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Peer Comparison
| Company | Return on Net Worth (in %) | NAV (in ₹) | PAT (in ₹ lakhs) |
|---|---|---|---|
LGT Business Connextions Ltd | 26.30 | 14 | 2.5813 |
International Travel House | 9.03 | 190.59 | 14.1380 |
IPO Registrar and Book Running Lead Manager
- IPO Registrar: Skyline Financial Services Pvt Ltd.
- Book Running Lead Manager: Mark Corporate Advisors Pvt Ltd
Business Model
LGT Business Connextions Ltd offers comprehensive range of travel services and tourism packages to its customers including MICE travel as well as cruise bookings, hotel bookings, in-transit arrangements, local sightseeing, and other tour and travels related services viz., customising travel plans, travel arrangements for trade fairs, etc. In addition to consolidated tour packages, the company also provides hotel accommodation, ticketing & visa processing services on a standalone basis.
It also designs travel packages for both corporate/ groups and individuals for their domestic as well as international leisure travel.
Company Growth Trajectory
The company’s revenue from operations grew from ₹13.5280 crores in FY 22 to ₹89.3574 crores in FY 24. Its EBITDA margin grew from 2.75% in FY 22 to 5.89% in FY 24.
Market Position
LGT Business Connextions Ltd has geographical presence in several states such as Telangana, Tamil Nadu, Karnataka, Gujarat, etc. It also generates revenues from other international destinations like Dubai, HongKong, USA, etc.
LGT Business Connextions Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 89.5307 | 61.1762 | 13.7677 |
Profit Before Tax (in ₹ crores) | 4.9257 | 4.02320 | 0.2989 |
Profit / Loss for the Period (in ₹ crores) | 3.6317 | 2.9743 | 0.2593 |
EPS in ₹ | 5.18 | 4.24 | 0.37 |
LGT Business Connextions Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 4.9257 | 4.02320 | 0.2989 |
Net Cash Provided / (Used) By Operating Activities (in ₹ crores) | 3.0411 | 1.1562 | 0.0568 |
Net Cash Provided / (Used) by Investing Activities (in ₹ crores) | (1.2067) | (0.4540) | (0.2362) |
Net Cash Provided / (Used) by Financing Activities (in ₹ crores) | (0.2078) | 0.3474 | 0.2931 |
Cash and Cash Equivalents at the End of the Period (in ₹ crores) | 3.7989 | 2.1722 | 1.1226 |
How to Check Allotment Status of LGT Business Connextions IPO?
Visit the Registrar’s Website
- Visit the official website of Skyline Financial Services Pvt Ltd
- Choose ‘Public Issue’ from ‘Investor’ dropdown
- Select the Name of the Company from dropdown
- Enter either your ‘Application No’, PAN or DP ID / Client ID
- Click on ‘Search’ to know the status
Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investor Services' tab. Under 'Investors Services', click on 'Status of Issue Application'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:
- Choose the Issue Type
- Select the Issue Name from dropdown
- Put in either your application number or PAN number -Check the box ‘I’m not a robot’
- Click on ‘Search’ to know allotment status
How to Apply for LGT Business Connextions IPO?
- Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
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 research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
LGT Business Connextions IPO FAQs
Where can I read more about LGT Business Connextions business?
You can read more about LGT Business Connextions and its IPO from the company’s red herring prospectus (RHP) [here](https://www.bseindia.com/corporates/download/327881/LGT Business Connextions Limited_20250227131426.pdf).
What is the IPO of LGT Business Connextions?
The IPO of LGT Business Connextions Ltd consists of a fresh issue and an offer for sale of up to ₹26.4634 crores and ₹2.9434 crores respectively.
When will the IPO of LGT Business Connextions go live?
The exact dates of the IPO of LGT Business Connextions Ltd are yet to be announced.
Who is the MD of LGT Business Connextions?
Wilfred Selvaraj is the MD of LGT Business Connextions Ltd.
