Ixigo’s market cap spikes nearly 80% from pre-IPO round

Le Ventures Private Limited, the parent company of Ixigo, made a spectacular debut on the National Stock Exchange on Tuesday, opening at a 48.5% premium above its issue price.

Ixigo’s issue price was set at Rs 93 but listed at Rs 138.5 on NSE while the firm’s share price on BSE opened at Rs 135, according to data sourced from both stock exchanges.

The Gurugram-based firm initiated its public offering with a price band of Rs 88-93 with a minimum bid quantity of 161 shares. It had raised Rs 740 crore through the IPO from anchor and retail investors.

Ixigo’s IPO subscription was oversubscribed by 98.3X while the portion of non-institutional investors (NIIs) oversubscribed by 110.5 times.

According to RHP, the company will use these proceeds for part-funding working capital requirements, investments in cloud infrastructure and technology, and inorganic growth through unidentified acquisitions and other strategic initiatives as decided by the board.

Ixigo’s RHP further explained that Elevation Capital and Peak XV made hefty 13X and 8.2X returns from Ixigo respectively. Micromax Limited also scored 10.88X return on its original investment from the company.

As per the data available on NSE, Ixigo's stock price stands at Rs 165.72 (as of 12.58 PM ) which is 20% higher than its opening price and 78.2% higher than the issue price. The company's overall market cap stands at Rs 6,420 crore ($773 million) from Rs 3,602 ($434 million) crore in the pre-IPO round.

Ixigo demonstrated decent growth during the first nine months of the last fiscal year (FY24). Its operating revenue stood at Rs 491 crore while the firm also made a sizable profit of Rs 65.7 crore in the same period.

It is the sharp improvement in the latter that has enthused investors, who clearly expect the firm to build on the performance in coming quarters. Stretched valuations are clearly not an issue for the booming travel sector where supply remains the only constraint.