Ixigo restarts IPO process, to raise Rs 120 Cr via fresh issue

Le Travenues Technology Limited, the parent company of online travel aggregator (OTA) ixigo, has filed a draft red herring prospectus (DRHP) with the Security Exchange Board of India (SEBI) for an initial public offering (IPO).

The company has proposed to raise Rs 120 crore worth of fresh issue and an offer for sale (OFS) of up to 66,677,674 equity shares.

This marks the company's second attempt at the public listing. In its previous attempt in August 2021, the company sought to raise Rs 1,600 crore through the IPO. Ixigo, however, then shelved the listing plans citing unfavorable macroeconomic conditions.

That said, the latest filings disclose Elevation Capital (formerly SAIF Partners) is selling up to 19,437,465 equity shares, whereas Peak XV Partners will offload 13,024,000 shares. Co-founders Aloke Bajpai and Rajnish Kumar will sell 11,950,000 shares each. The OFS participants include Micromax Informatics, Placid Holdings, and Madison India Capital.

Axis Capital, DAM Capital, and JM Financial are the book-running lead managers of the issue.

Ixigo, in its filings, said it would deploy Rs 45 crore from the IPO proceeds for working capital requirements. Another Rs 25.8 crore is earmarked for investments in tech, data science, AI, and customer engagement. The remaining amount will be used for acquisitions, strategic initiatives, and other general corporate purposes.

Also read: Decoding the financial performance of India’s top OTA players

As per the DRHP, Elevation Capital owns a 23.4% share in the OTA firm followed by Peak XV Partners and Gamnat, which command 15.68% and 9.68% shares, respectively. Co-founders Rajnish Kumar and Aloke Bajpai collectively own a 16.67% stake. Further, Micromax (5.81%), Trifecta Leaders (3.07%), Bay Capital (3%), and Malabar Investments (2.57%) also command significant stakes in the firm.

Ixigo’s fresh attempt to go public comes amid its improved operating revenue and profitability. For the nine months ending December 2023 (Apr-Dec 2023), Ixigo posted Rs 491 crore in revenue from operations with a profit of Rs 65.7 crore.

Its revenue from operations went up 32% to Rs 501 crore during FY23 from Rs 379.6 crore in FY22. Following the impressive growth, it also turned profitable in FY23 with Rs 23.4 crore profit against Rs 21 crore loss in FY22.