ixigo raises Rs 333 crore from anchor investors ahead of IPO launch

Gurugram-based traveltech firm ixigo, which is owned and operated by Le Travenues Technology Ltd, has raised Rs 333 crore from anchor investors ahead of its initial public offering (IPO).

The announcement was made on June 7, 2024, just a few days before the IPO was set to open to the public. The IPO will be open for subscription from June 10 to June 12, 2024.

Major investors include the Government of Singapore, Morgan Stanley, 3P India Equity Fund, HDFC Mutual Fund, and Tata Investment Corporation, among others.

Who are the participating investors?

The anchor book saw participation from several prominent investors. Notable names such as Nomura, Morgan Stanley, HDFC Mutual Fund, Motilal Oswal Mutual Fund, and the Government of Singapore were allocated a total of 35,811,405 equity shares at an issue price of Rs 93 per share.

A significant portion of these shares, precisely 33.75%, was allocated to four domestic mutual funds through seven different schemes.

These mutual funds included SBI Magnum Children's Benefit Fund, HDFC Mutual Fund, Whiteoak Capital Flexi Cap Fund, and Motilal Oswal Large Cap Fund.

IPO details

ixigo's IPO consists of a fresh issue of equity shares worth Rs 120 crore and an Offer For Sale (OFS) of 6.66 crore equity shares by existing shareholders. This combination aims to raise a total of Rs 740 crore at the upper end of the price band set between Rs 88 to Rs 93 per share.

The IPO's proceeds from the fresh issue will be utilized for various strategic initiatives, including Rs 45 crore for working capital requirements and Rs 26 crore for investments in technology, artificial intelligence, and customer engagement platforms.

Additionally, the funds will support inorganic growth through acquisitions and general corporate expenses.

How is ixigo performing financially?

ixigo has shown significant financial growth, highlighting its strong market position. For the nine months ending December 2023, the company reported a 31% increase in revenue from operations, reaching Rs 497 crore. During the same period, ixigo's net profit surged tenfold to Rs 65.7 crore.