Ixigo, a travel technology company based in India, recently announced its plans to go public through an initial public offering (IPO). The move is a significant milestone for the company, which has been a major player in the Indian travel industry since its inception in 2007. This article will explore the details of Ixigo’s IPO, what it means for the company, and what investors can expect.
The Details of Ixigo’s IPO
Ixigo has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its IPO. The company plans to raise around Rs 1,600 crores ($215 million) through the offering, consisting of a fresh issue of shares and an offer for sale by existing shareholders.
According to the DRHP, the new issue of shares will amount to Rs 750 crores ($100 million), while the offer for sale will be worth Rs 850 crores ($115 million). The company still needs to disclose the price range for the offering or the IPO date.
What Ixigo Does
Ixigo is a travel technology company that provides various services to travelers. Ixigo’s IPO Its platform offers flight and hotel bookings, bus and train ticket reservations, and holiday packages, among other things. The company also provides travel-related information such as flight schedules, hotel reviews, and destination guides.
Ixigo has differentiated itself from other travel companies in India by focusing on providing the best user experience possible. The company’s platform is known for its ease of use, speed, and accuracy. In addition, Ixigo has developed several innovative features, such as its fare prediction tool, which helps travelers find the best flight deals.
Ixigo’s financials are impressive, with the company showing strong revenue growth and profitability in recent years. According to the DRHP, the company’s revenue has grown from Rs 37 crores ($5 million) in 2017-18 to Rs 113 crores ($15 million) in 2019-20, representing a compound annual growth rate (CAGR) of 65%. In the same period, the company’s net profit increased from Rs 2.9 crores ($0.4 million) to Rs 16.5 crores ($2.2 million), representing a CAGR of 206%.
What the IPO Means for Ixigo
The IPO is a significant milestone for Ixigo, as it will provide the company with the funds it needs to expand its operations and continue its growth trajectory. The funds raised from the offering will be used to invest in technology, marketing, and expansion into new markets.
In addition, the IPO will provide liquidity to existing shareholders, including the company’s co-founders, who can sell a portion of their shares in the offering. The co-founders, Aloke Bajpai and Rajnish Kumar will remain majority shareholders in the company after the IPO.
What Investors Can Expect
Ixigo’s IPO is likely to be highly anticipated by investors, given the company’s strong financial performance and reputation in the travel industry. The offering is also likely to benefit from the overall bullish sentiment in the Indian IPO market, which has seen a surge in activity in recent years.
Investors can expect strong demand for Ixigo’s shares, particularly from institutional investors such as mutual funds and foreign portfolio investors. The offering is also likely to attract interest from retail investors, given the high visibility of the company and the popularity of the travel industry in India.
Ixigo’s IPO is an exciting development for the company and India.