The initial public offering (IPO) of online travel company ixigo, operated by Le Travenues Technology Limited, has seen robust investor demand as it enters the final day of the issue period on Wednesday.
According to the latest subscription data as of 11 AM, the overall IPO book was oversubscribed 15.67 times, with the retail portion seeing heavy interest at 26.94 times subscription. The non-institutional investor (NII) segment was also well oversubscribed at 37.88 times, though the qualified institutional buyer (QIB) portion lagged at just 0.81 times.
The strong subscription momentum has kept grey market premiums firm, with ixigo shares trading at a premium of ₹25 in the unofficial grey market today, up ₹1 from the previous day.
Market observers attribute the healthy demand to ixigo’s position as a leading online travel aggregator in India, with a focus on budget travelers. The company has seen rapid growth in recent years, with revenue surging at a 92% CAGR between FY21-23.
Brokerages are optimistic on the prospects, citing ixigo’s scalable technology platforms, diverse product offerings across travel verticals like flights, trains, buses and hotels, and the long growth runway in India’s underpenetrated online travel market.
“We recommend subscribing to the ixigo IPO given the company’s market leadership, focus on the ‘following billion’ users, and the large industry opportunity,” said BP Equities in its IPO note, despite acknowledging the “rich valuations.”
Ajcon Global Services also gave the issue a ‘subscribe’ rating, highlighting ixigo’s strong financials, high revenue productivity, and the tailwinds from increasing travel and internet penetration in India.
The ₹1,600 crore IPO is entirely a fresh issue of equity shares, with the proceeds slated to fund product development, acquisitions, and general corporate purposes. The public issue closes for subscription later today.