Ixigo Gets SEBI Approval For IPO, Elevation Capital, And Peak XV Partners To Take Part In OFS

The Securities and Exchange Board of India (SEBI) has approved for an initial public offering (IPO) to LE Travenues Technology, the parent company of travel company, Ixigo. 

SEBI Observations 

Recent updates from SEBI shed light on the processing status of LE Travenues Technology’s IPO draft offer documents. According to SEBI’s processing status, observations were issued on May 14 for LE Travenues Technology’s IPO. As stated by SEBI’s guidelines, the issuance of observations indicates that the company is eligible to launch its IPO within one year from the date of receiving the observations letter.

Details of  Ixigo’s IPO

The parent firm of Ixigo, backed by SAIF Partners and Peak XV Partners, submitted its draft papers on February 14 this year. The proposed IPO includes a fresh issuance of equity shares worth Rs.120 crore and an offer-for-sale (OFS) of 6.67 crore equity shares by existing shareholders. Axis Capital, DAM Capital Advisors, and JM Financial are acting as the book-running lead managers for this issue.

The selling shareholders in the OFS include SAIF Partners India IV, Peak XV Partners Investments V (formerly SCI Investments V), Aloke Bajpai, Rajnish Kumar, Micromax Informatics, Placid Holdings, Catalyst Trusteeship, and Madison India Capital HC.

Allocation of Funds

The funds from the IPO are to be deployed to address diverse needs of the company like funding the working capital of the company by investing Rs.45 Cr, along with strengthening cloud infrastructure and technology with a Rs.25.8 crore investment, the rest of the funds will be diverted for facilitating inorganic growth via acquisitions and other strategic initiatives. 

Financials

Ixigo reported Rs.491 crore in revenue for the 9 month period ending December 2023, accompanied by a net profit of Rs.65.7 crore. In FY23, the company reported a 32% year-on-year revenue increase to Rs.501 crore and achieved a profit of Rs.23.4 crore, marking its year of profitability.

Conclusion: Ixigo’s IPO journey, initiated in February, signals a pivotal growth phase. With plans to raise Rs.120 crore through fresh shares and offer 66.67 million shares for sale, the company’s trajectory seems set for transformation. This capital infusion is designated to drive technological growth along with enhancing customer engagement, ensuring a prudent allocation for future expansion.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.