ixigo files draft papers for IPO with fresh issue size of INR 120 crore, ET TravelWorld

Le Travenues Technology, the parent company of the leading travel booking firm ixigo, has submitted initial documents to Security Exchange Bureau of India (SEBI) for its initial public offering (IPO). The Gurugram-based firm plans to raise funds through a combination of fresh equity shares worth INR 120 crore and the sale of 6.66 crore existing shares by current shareholders, as detailed in the Draft Red Herring Prospectus (DRHP).

SAIF Partners India IV, Peak XV Partners Investments V (formerly known as SCI Investments V), Micromax Informatics, Placid Holdings, Catalyst Trusteeship, Madison India Capital HC, along with ixigo founders -Aloke Bajpai and Rajnish Kumar, will be offloading shares through the Offer For Sale (OFS) route.

The proceeds of INR 45 crore from the fresh issue will be allocated for working capital requirements, while INR 26 crore will be invested in technology, including cloud and server hosting, artificial intelligence, and customer engagement. Additionally, funds will be earmarked for potential acquisitions and general corporate purposes.

The company also intends to conduct a pre-IPO round to raise up to INR 24 crore, which may lead to a reduction in the size of the fresh issue. Axis Capital, DAM Capital Advisors, and JM Financial have been appointed as the book running lead managers for the public issue.

Established in 2007 by Bajpai and Kumar, Le Travenues Technology assists travellers in planning, booking, and managing trips across various modes of transportation and accommodations. The ixigo Group also has several subisdiaries under its umbrella which deals in diffrent travel segments including Abhibus and Freshbus for bus travel and Ixigo trains for train travel.

In the financial year ending March 2023, the company’s total income increased to INR 517 crore from INR 385 crore in the previous fiscal. It reported a profit of INR 23.4 crore for the same period compared to a loss of INR 21 crore in the preceding year.According to the F&S Report, India’s total travel market, covering air, rail, road, and hotel segments, is estimated to be approximately INR 3.8 lakh crore in Fiscal 2023 and is projected to grow at a compound annual growth rate (CAGR) of around 9 per cent to reach INR 5.8 lakh crore by Fiscal 2028.

Le Travenues Technology had previously filed draft papers with SEBI in August 2021 for a INR 1,600 crore IPO, which did not materialize. The proposed IPO then comprised a fresh issuance of shares worth INR 750 crore and an offer for sale of equity shares worth INR 850 crore by existing shareholders.