LGT Business Connextions Limited—a brand widely known in the tourism market for its flagship LGT Holidays service—has opened its Initial Public Offering (IPO) today, marking an important milestone in the company’s growth journey. The fixed price issue amounts to ₹28.09 crores, with a share price set at ₹107 per equity share, and will remain open for public subscription from August 19, 2025, to August 21, 2025. As one of the emerging players in the Indian travel and tourism industry, the company intends to utilize the IPO proceeds to strengthen its capital base, finance expansion plans, and enhance its working capital efficiency.

Founded in 2016 by Mr. Wilfred Selvaraj and Mrs. Padma Wilfred, LGT Business Connextions began with a clear mission—to innovate and reshape travel experiences for modern travelers. What started as an idea by a group of dynamic travel professionals has evolved into a multi-service travel and tours enterprise offering domestic and international holiday packages, MICE services, visa assistance, ticketing solutions, customised travel itineraries, and associated travel services. The brand distinguishes itself through a commitment to customer-centricity, innovative travel concepts, and an unwavering focus on memorable experiential journeys.

The IPO comprises a Fresh Issue of 23.62 lakh equity shares worth ₹25.28 crores and an Offer for Sale of 2.62 lakh shares totaling ₹2.81 crores. The company is being listed on the BSE SME platform, and MARK Corporate Advisors Private Limited acts as the Book Running Lead Manager, while Skyline Financial Services Private Limited is the Registrar to the Issue. The minimum investment requirement for retail investors is 2 lots (2,400 shares), amounting to ₹2,56,800.

Company Overview and Market Presence

LGT Holidays, the travel and tours brand under LGT Business Connextions Limited, has built a credible presence in the highly competitive Indian tourism market. What sets it apart is the company’s ability to curate tailored travel experiences that align with modern traveler expectations—whether it’s leisure, adventure, corporate travel, or special events.

Over the years, LGT Business Connextions has been able to establish strong supplier relationships, develop an extensive customer base, and expand its portfolio of destinations. Its diverse service profile includes:

• Domestic Holiday Packages

• Outbound International Tours

• Corporate Travel Management

• Group Tours & MICE Travel

• Visa and Travel Documentation Services

• Travel Insurance & Ancillary Services

The combination of industry expertise, dynamic leadership, and service diversification has enabled the company to deliver consistent performance and navigate the challenges associated with the travel market—particularly during the periods of global uncertainty such as the COVID-19 pandemic.

Financial Performance and Growth Highlights

LGT Business Connextions has demonstrated steady financial growth over the past three financial years.
Revenue from operations rose from ₹6,117.62 lakh in FY23 to ₹10,080.94 lakh in FY25, indicating a strong compounded annual growth rate.
EBITDA grew from ₹450.01 lakh in FY23 to ₹844.76 lakh in FY25, reflecting improved margin performance.
Profit after Tax (PAT) increased from ₹297.43 lakh in FY23 to ₹521.59 lakh in FY25.

The pre-issue Earnings Per Share (EPS) for FY24 is ₹7.44, while the post-issue EPS is ₹5.56. The post-issue P/E ratio stands at 19.23x, compared to the industry average P/E ratio of 34x, indicating that the IPO is fairly valued relative to peers in the travel and tourism space.
Further, the company boasts a Return on Capital Employed (ROCE) of 45.19% and a Return on Equity (ROE) of 41.89% in FY24—both healthy figures that indicate strong capital efficiency and shareholder returns.

Objectives of the Issue

The net proceeds from the Fresh Issue will be used for the following purposes:

• Capital Expenditure (₹1,043.61 lakh)
To expand operational capabilities, modernize infrastructure, invest in new technology platforms, and broaden the service footprint in emerging travel hubs.

• Working Capital Requirements (₹770.00 lakh)
To support day-to-day operations, improve liquidity, and manage the cyclical nature of the travel business effectively.

• General Corporate Purposes (₹378.88 lakh)
To strengthen overall business operations, enhance marketing and brand visibility, and support strategic initiatives.

Business Strengths

1. Strong Industry Position and Diverse Offerings
LGT Business Connextions is backed by an experienced promoter group and a diversified portfolio of travel services that cater to different market segments, ranging from leisure travellers to corporate clients.

2. Established Relationships with Suppliers and Travel Partners
Over the years, the company has built reliable partnerships with airlines, hotel networks, ground transport companies, and global tourism boards—ensuring access to preferred rates and better service delivery.

3. Scalable Business Model
The business model is flexible and scalable, which allows the company to extend new products and expand into new geographic markets without compromising operational efficiency.

4. Growing Market Demand for Travel Services
The Indian travel industry has witnessed a strong post-pandemic revival, driven by rising disposable income, aspirational travel themes, and increasing demand for curated travel experiences—factors that align directly with LGT’s strengths.

5. Strong Financial Metrics and Cash Flow
The company has shown steady growth in both earnings and operating margins, supported by strong ROE and ROCE numbers which reflect effective utilisation of incoming capital.

Business Strategies

• Geographic Expansion
LGT intends to open new branch offices in Tier-II and Tier-III cities, expanding its presence beyond existing metro markets. These cities contribute to growing demand as travel preferences evolve.

• Product Diversification
The company will continue to introduce new tour formats, including experiential and niche travel segments such as wellness tourism, sports tourism, and luxury tailored travel.

• Strengthening Brand Awareness
The IPO will provide additional capital to scale digital marketing campaigns to reach wider audiences and build long-term brand loyalty amongst younger travellers.

• Technological Upgrades
LGT plans to enhance its enterprise resource planning (ERP) and CRM platforms to improve customer management, user experience, and back-end operational efficiency.

• Strengthening B2B Relationships
By forging partnerships with large corporates and travel aggregators, the company aims to grow its B2B revenue contribution, thereby balancing seasonal retail volatility.

Risks and Concerns

Despite its growth, the company faces several risks that potential investors should consider:

• Dependence on Key Promoters
  The business is directly influenced by the vision and capabilities of the founder promoters. Any departure or lack of experienced replacements may disrupt execution.

• Sensitivity to Macroeconomic and Geopolitical Factors
  Travel demand is closely linked to economic cycles, geopolitical conditions, and pandemic-related restrictions. Any disruption could impact business.

• Competitive Pressure in Tourism Industry
  The Indian travel market is highly fragmented with increasing competition from online aggregators and global travel portals.

• Working Capital Intensive Business Model
  The expansion of the service footprint and introduction of new product lines require significant working capital, and any shortfall could impact operations.

• Foreign Exchange Fluctuation
  A major portion of revenue is generated from outbound tours. Any adverse fluctuation in currency exchange rates could affect margins.

Conclusion

In conclusion, LGT Business Connextions Limited brings its IPO at a time when the Indian travel and tourism industry is experiencing strong revival and heightened customer enthusiasm. The company’s steadily improving financial performance, robust operating metrics, and expansion-focused strategy make it a compelling long-term play in the travel segment. However, investors looking for short-term listing gains should be aware that the Grey Market Premium (GMP) currently stands at ₹0, and analyst sentiment currently recommends an “Avoid” stance only for listing gain purposes.

For long-term investors with a risk appetite and belief in the structural growth of the Indian tourism market, LGT Business Connextions’ fair valuation, consistent cash flows, and established industry positioning may offer sustainable value over time.
Ultimately, the success of the offering will depend on the company’s ability to profitably scale its business, adapt to changing market trends, and maintain high service standards in an increasingly competitive environment.

The Upcoming IPOs in this week and coming weeks are Shivashrit Foods, ARC Insulation & Insulators, Mangal Electrical Industries, LGT Business Connextions, Vikram Solar, Gem Aromatics, Shreeji Shipping Global, Patel Retail.

The Current active IPO are Studio LSD.

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