Ixigo’s Parent Company Le Travenues Tech Files for IPO: Key Insights

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Three points you will get to know in this article:

  • Le Travenues Technology, Ixigo’s parent company, files IPO aiming Rs 120 crore.
  • IPO plans show renewed determination after prior attempt put on hold.
  • Ixigo plans to allocate IPO proceeds for operations, tech, and acquisitions.

Le Travenues Technology Limited, the proud parent company of ixigo, a leading online travel aggregator, has taken a significant step forward by submitting a draft red herring prospectus (DRHP) to the esteemed Security Exchange Board of India (SEBI) for its upcoming initial public offering (IPO).

In this exciting endeavor, the company aims to raise a substantial sum of Rs 120 crore through a fresh issue of shares, coupled with an offer for sale (OFS) of up to 66,677,674 equity shares.

Participants in the Offer for Sale

This isn’t the first time the company has ventured into the realm of public listing. In a prior attempt back in August 2021, ixigo had set its sights on raising Rs 1,600 crore through an IPO. However, due to less-than-ideal macroeconomic conditions at the time, the plans were put on hold.

But now, with renewed determination, ixigo is back on track. The recent filings reveal that Elevation Capital (formerly known as SAIF Partners) is looking to sell up to 19,437,465 equity shares, while Peak XV Partners plans to offload 13,024,000 shares. Additionally, both co-founders, Aloke Bajpai and Rajnish Kumar, intend to part ways with 11,950,000 shares each. Notably, among the participants in the offer for sale are prominent names like Micromax Informatics, Placid Holdings, and Madison India Capital.

This move not only signifies ixigo’s commitment to growth and expansion but also reflects its confidence in the market’s potential. As the journey towards the IPO unfolds, ixigo continues to innovate and redefine the travel landscape, ushering in a new era of exploration and adventure for travelers worldwide.

Axis Capital, DAM Capital, and JM Financial have been entrusted as the prime book-running lead managers overseeing the issue.

Utilization of IPO Proceeds

Ixigo, in its official filings, has outlined its plan to allocate Rs 45 crore from the IPO proceeds to meet its operational needs effectively. Furthermore, a sum of Rs 25.8 crore has been set aside for investments in cutting-edge technology, data science, AI advancements, and enhancing customer engagement experiences. The balance will be directed towards potential acquisitions, strategic ventures, and fulfilling various general corporate obligations.

According to the details laid out in the DRHP, Elevation Capital holds a substantial 23.4% stake in the OTA firm, closely followed by Peak XV Partners and Gamnat, with shares amounting to 15.68% and 9.68% respectively. The co-founders, Rajnish Kumar and Aloke Bajpai, collectively possess a noteworthy 16.67% ownership interest. Additionally, other key stakeholders include Micromax (5.81%), Trifecta Leaders (3.07%), Bay Capital (3%), and Malabar Investments (2.57%), all contributing significantly to the firm’s ownership landscape.

Operational Performance and Financial Outlook

Ixigo is embarking on a fresh journey towards public offering, buoyed by its enhanced operational performance and newfound profitability. In the period spanning April to December 2023, the company achieved a commendable revenue of Rs 491 crore, coupled with a profit of Rs 65.7 crore.

The upward trajectory continued through FY23, witnessing a notable surge in operational revenue to Rs 501 crore from Rs 379.6 crore in FY22, marking a substantial 32% increase. Moreover, FY23 marked a significant turning point as the company not only achieved profitability but also recorded a profit of Rs 23.4 crore, a remarkable transformation from the Rs 21 crore loss incurred in FY22.

Le Travenues Technology Limited, the parent company of ixigo, submitted a draft red herring prospectus (DRHP) to SEBI for its upcoming IPO, aiming to raise Rs 120 crore through a fresh issue of shares and offer for sale of up to 66,677,674 equity shares. Notable participants in the offer for sale include Elevation Capital and co-founders Aloke Bajpai and Rajnish Kumar. The IPO proceeds are earmarked for operational needs, technological advancements, and strategic ventures. Ixigo’s enhanced operational performance and profitability, with revenues of Rs 501 crore and a profit of Rs 23.4 crore in FY23, underscore its confidence in the market’s potential.

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