On Friday, Le Travenues Technology Ltd, the operator of travel platform Ixigo, filed draft papers for a ₹1,600 crore initial share sale, joining a slew of companies seeking to exploit a record rally in equity markets.
The Gurugram-based firm proposes to sell new shares to raise ₹750 crores, while promoters and shareholders will market shares worth ₹850 crores through an offer for sale (OFS). As per the draft red herring prospectus registered with the Securities and Exchange Board of India (Sebi), the OFS constitutes the sale of shares worth up to ₹50 crores by group chief executive officer and managing director and co-founder Aloke Bajpai, up to ₹50 crores by group chief product and technology officer, director and co-founder Rajnish Kumar, ₹550 crores by venture capital fund SAIF Partners India IV and up to ₹200 crores by consumer electronics firm Micromax Informatics. Currently, Bajpai holds a 9.18% stake in Ixigo, Kumar 8.79%, SAIF Partners 23.97% and Micromax 7.61%.
ICICI Securities, Axis Capital, Kotak Mahindra Capital, Nomura Financial Advisory and Securities are the head managers to the subject. The initial public offering (IPO) gains will be used for organic and inorganic growth enterprises. The organic growth initiatives include
- discounts and promotions,
- marketing and distribution expenses, and
- investments in developing technology infrastructure.
Inorganic growth initiatives entail acquisitions and other vital initiatives. Propelled in 2007 by Bajpai and Kumar, Ixigo helps book train, flight and bus tickets, hotels and cabs, and presents travel utility tools and services such as train PNR status and confirmation predictions, train seat availability alerts, train running status updates and delay foresight, flight status updates, bus running status, pricing and availability alerts, deal discovery, destination content, personalized recommendations, instant fare alerts for flights and automated customer support services. For FY21, Ixigo recorded a total income of ₹138.41 crores, up from ₹112.96 crores in the prior year. It also pivoted to a net profit of ₹7.53 crore last fiscal from a year-earlier loss of ₹26.61 crores. Nevertheless, its net debt increased to ₹99.62 crores the last fiscal from ₹19.97 crores a year ago.