Robust Response to ixigo IPO, Subscription Deadline Nearing

Le Travenues Technology, the parent company of the travel booking platform ixigo, is experiencing a strong investor interest as its IPO nears the subscription deadline. The IPO, open for bidding until June 12, has garnered significant attention from primary market investors.

With a price band set at ₹88 to ₹93 per equity share, the company is looking to raise ₹740.10 crore through a mix of fresh issues and offers for sale (OFS), with ₹620.10 crore allocated for OFS and ₹120 crore for fresh issues.

The grey market premium for Le Travenues Technology, parent of ixigo, stands at ₹24, indicating positive market sentiment despite prevailing stock market volatility. Analysts have given mixed views on the IPO, recommending caution and highlighting areas of concern.

Mehta Equities suggests that only risk-taking investors should consider subscribing to the IPO, citing valuations, founder holdings, and growth triggers as key factors to consider. Anand Rathi presents a more optimistic view, advising a long-term ‘SUBSCRIBE’ rating for the issue.

Canara Bank Securities offers another ‘SUBSCRIBE’ recommendation, emphasizing the company’s market share in the online travel segment and its potential for business scalability and profitability.

As the subscription for the Le Travenues Technology IPO surpasses 1.95 times by day 2, retail investors seem particularly enthusiastic, showing interest 13.46 times the retail portion. Expert’s analysis reveals a P/E ratio of 41.12x based on FY2024 earnings, prompting careful consideration for potential investors.

Considering Le Travenues Technology’s strong presence in rail bookings, market share through platforms like ixigo and ConfirmTkt, analysts believe the company is well-positioned in the evolving travel sector, presenting opportunities for long-term growth and profitability.