ixigo Listing: Stock expected to list at 30% premium to IPO price on June 18

The IPO has set a price band of Rs 88-93 a share.The issue comprised a fresh issue of Rs 120 crore and an offer for sale of upto 66.68 million shares.

Le Travenues Technology, the parent company of travel aggregator Ixigo, is likely to make a robust debut on the bourses on June 18. According to analysts, the stock should list at around a 30 percent premium from its issue price of Rs 93 a share.

Ahead of the listing, the shares were commanding a 31 percent premium in the grey market, an unofficial ecosystem where shares start trading before the allotment in the IPO and continue till the listing day. Most investors track the grey market premium (GMP) to gauge the listing price.

According to some analysts, the stock is set to shine at listing, thanks to its massive subscription and robust grey market premium. Investors are advised to hold onto it for the long haul to reap impressive returns.

Amit Goel, Co-Founder & Chief Global Strategist at Pace 360, said, "IXIGO, a top travel tech company, helps Indian travelers easily organize and book their trips. Despite FY22 challenges, IXIGO is set for strong growth from FY23. Expect innovative solutions and great service, with a listing at Rs 120-125 per share and a 32% gain."

The IPO has set a price band of Rs 88-93 a share. The issue comprised a fresh issue of Rs 120 crore and an offer for sale of up to 66.68 million shares which comes to Rs 620 crore on the upper price band. The total issue size will be Rs 720 crore.

SAIF Partners India IV, Peak XV Partners Investments V, Aloke Bajpai, Rajnish Kumar, Micromax Informatics, Placid Holdings, Catalyst Trusteeship, and Madison India Capital HC are the selling shareholders in the OFS. SAIF Partners and Peak XV are the largest shareholders in the company, with 23.37 percent and 15.66 percent stake, respectively.

The subscription for the Ixigo IPO began on June 10 and concluded on June 12. By the final day of bidding, the IPO was subscribed 98.34 times.

Non-institutional investors subscribed to the IPO 110.53 times, institutional investors 106.73 times, and retail investors 54.85 times on the final day. It was the 10th most subscribed IPO of 2024.

"Le Travenues Technology Ltd (Ixigo) is set for a strong debut on Tuesday, expected to list at a 30% premium. Focused on becoming the most consumer-centric travel company, Ixigo helps Indian travelers plan, book, and manage trips seamlessly across rail, air, buses, and hotels. The company also offers utilities like PNR status updates and AI-based itinerary planners. With the travel sector set to grow due to increasing GDP, rising incomes, and improved infrastructure, Ixigo is well-positioned to benefit. Investors are advised to hold the shares for the medium to long term," said Parth Shah, Research Analyst at StoxBox.

With an impressive track record and promising growth outlook, Ixigo is poised to become a leading player in the travel industry. The company’s innovative solutions and consumer-centric approach make it a compelling choice for investors seeking long-term value.