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HomeNewsStartup NewsIxigo Makes Strong Stock Market Debut with 48.4% Premium on IPO Listing

Ixigo Makes Strong Stock Market Debut with 48.4% Premium on IPO Listing

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Le Travenues Technology, founded by Aloke Bajpai and Rajnish Kumar, the parent company of popular travel aggregator Ixigo, marked a remarkable debut on the stock exchanges. The IPO listing saw Ixigo’s shares open at ₹138.10 on the NSE, reflecting a substantial 48.4% premium over its issue price of ₹93 per share. Similarly, on the BSE, the stock debuted at ₹135, representing a 45.1% premium.

The initial trading hours saw Ixigo’s shares further appreciate, reaching ₹148.13 by 10:30 am, marking a 7.26% increase from the listing price. The company’s market capitalization swiftly climbed to ₹5,760.9 crore, underscoring investor confidence and enthusiasm surrounding the IPO.

Ixigo’s IPO, which closed recently after being oversubscribed 98.34 times, garnered significant interest across investor categories. Notably, non-institutional investors subscribed 110.53 times, while qualified institutional buyers (QIBs) showed robust demand with a subscription rate of 106.73 times. Retail investors also demonstrated strong participation, subscribing 54.85 times.

The IPO comprised a fresh issue of shares worth ₹120 crore and an offer for sale (OFS) of 66.68 million shares amounting to ₹620 crore. Proceeds from the IPO are earmarked for bolstering cloud infrastructure, technology enhancements, working capital needs, potential acquisitions, and general corporate purposes.

Founded in 2006, Le Travenues Technology operates multiple online travel agency platforms, including Ixigo for trains and flights, Confirmtkt, and abhibus. The company reported robust financial performance, with FY2022-23 witnessing a net profit of ₹23.3 crore against a net loss in the previous fiscal year. Revenue for FY2022-23 stood at ₹501 crore, marking a significant increase from ₹379 crore in FY2021-22.

In light of its strong market debut and robust subscription figures, Ixigo’s listing underscores its resilience and growth prospects in India’s competitive online travel sector. As the company continues to expand its market presence and capitalize on post-pandemic travel trends, investors are optimistic about its future trajectory.

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