LE TRAVENUES TECHNOLOGY LIMITED (ixigo) IPO Review

LE TRAVENUES TECHNOLOGY LIMITED (ixigo) is a technology company assisting travelers through their OTA platforms, comprising their websites & mobile applications, for making smarter travel decisions to plan, book and manage their trips across rail, air, buses and hotels. 

The company is led by Mr. Aloke Bajpai, Chairman and Managing Director, who has about 18 years of experience in this field. Under his leadership, ixigo has grown its operations and established itself as a leading OTA player in india

Financially, ixigo revenue increased from Rs. 138.4 crore in FY21 to Rs. 385 crore in FY22 further going to Rs. 517.57 Cr. in FY23 and landing at Rs. 497.09 crore for the 9MFY24. Similarly, EBITDA rose from Rs. 6.14 crore in FY21 to Loss of Rs. 6.95  crore in FY22 and turnaround after that to Rs.45.04 Cr. in FY23 and then landing at Rs. 34.31 crore for the 9MFY24. This indicates steady financial performance.

For the IPO, ixigo is issuing shares at a pre-issue EPS of Rs. 1.75 and a post-issue EPS of Rs. 1.70. The pre-issue P/E ratio is 53.14, while the post-issue P/E ratio is 54.70 against the industry P/E ratio of 37. The company's ROCE for 9MFY24 is 7.85%, and ROE for 9MFY24 is 15.03%. These metrics suggest that the IPO is fully priced.

The Grey Market Premium (GMP) indicates potential listing gains of 25% - 35%. Given the company's steady financial performance and the valuation of the IPO, we recommend only Risky Investors to apply in the IPO for small listing gains and long term investors can invest  post debut in share market.