The LGT Business Connextions Limited IPO has officially opened for subscription, drawing the attention of investors interested in the SME segment. The company, known for its travel and tourism brand LGT Holidays, offers a wide range of services within the tourism industry. Established in 2016 by a team of travel professionals, the company was built with the vision to reshape travel trends and offer unique, innovative, and memorable experiences to travelers. Their commitment to excellence has allowed them to build a solid reputation in the industry over the years.

The IPO of LGT Business Connextions is a Fixed Price Issue amounting to ₹28.09 crore, consisting of a Fresh Issue of 23.62 lakh shares worth ₹25.28 crore and an Offer for Sale (OFS) of 2.62 lakh shares worth ₹2.81 crore. The issue price is set at ₹107 per equity share, giving the company a market capitalization of ₹100.29 crore at the IPO price. The IPO subscription window opened on 19 August 2025 and closed on 21 August 2025.

The allotment date has been fixed on 22 August 2025, with listing expected on the BSE SME platform by 26 August 2025. The lot size for the IPO is 1,200 shares, and individual retail investors are required to apply for a minimum of two lots (2,400 shares), amounting to an investment of ₹2,56,800.

The issue is being managed by Mark Corporate Advisors Private Limited as the book running lead manager, while Skyline Financial Services Private Limited acts as the registrar. Additionally, Asnani Stock Brokers Private Limited is designated as the market maker for this IPO.

LGT Business Connextions IPO GMP Today

The Grey Market Premium (GMP) for LGT Business Connextions IPO has been reported at ₹0, suggesting no premium over the issue price. This indicates that no significant grey market activity is taking place for the IPO. As a general guideline, GMP is unofficial and depends entirely on unregulated demand and supply in the grey market. Investors are advised not to rely on GMP as a decisive factor since it is not an officially recognized indicator of stock performance.

Live Subscription Status

On the final day of the IPO subscription period (21 August 2025, 11:00 AM update), the IPO was subscribed 0.60 times. This reflects subdued investor participation, suggesting that demand did not exceed supply by a wide margin. Investors will have to wait until the final consolidated figures are announced at the close of the issue to assess exact subscription levels across investor categories such as QIBs, NIIs, and retail.

Financial Performance of the Company

The company’s financial track record shows consistent growth:

• Revenue from operations stood at ₹10,080.94 lakh in FY25, compared to ₹8,953.07 lakh in FY24 and ₹6,117.62 lakh in FY23.

• EBITDA improved from ₹450.01 lakh in FY23 to ₹570.72 lakh in FY24, and further to ₹844.76 lakh in FY25.

• Profit After Tax (PAT) grew steadily from ₹297.43 lakh in FY23 to ₹363.17 lakh in FY24, and ₹521.59 lakh in FY25.

This steady growth demonstrates the company’s ability to scale its operations effectively. The promoters, Mr. Wilfred Selvaraj and Mrs. Padma Wilfred, bring decades of combined experience in travel and real estate, though their expertise in scaling large operations is limited compared to established peers.

Valuation and Ratios

For FY24, the company reported a pre-issue EPS of ₹7.44 and a post-issue EPS of ₹5.56. The P/E ratio stands at 14.38x pre-issue and 19.23x post-issue, compared to the industry average P/E of around 34x. While this suggests the IPO is fairly priced, it may not offer substantial listing gains.

• ROCE for FY24: 45.19%

• ROE for FY24: 41.89%

• RoNW for FY24: 41.89%

These strong ratios highlight profitability and efficient capital utilization, making the company fundamentally strong in its niche.

IPO Objectives

The net proceeds from the IPO are proposed to be used for:

1. ₹1,043.61 lakh for capital expenditure.

2. ₹770.00 lakh for meeting working capital requirements.

3. ₹378.88 lakh for general corporate purposes.

This allocation suggests that the company is focused on expansion and operational stability, which could support future growth.

IPO Review and Recommendation

Despite consistent financial growth and a strong niche presence in the travel and tourism industry, the GMP trend of ₹0 and modest subscription status highlight limited investor enthusiasm. Analysts suggest that the IPO may not deliver immediate listing gains, and therefore, short-term investors looking for quick profits may want to avoid it. However, long-term investors who believe in the growth potential of the tourism industry and the company’s business model may still consider investing.

In summary, the LGT Business Connextions IPO presents a story of a growing SME with strong fundamentals, but one that lacks short-term triggers for sharp listing gains. Investors must carefully weigh their risk appetite, investment horizon, and market outlook before subscribing. This IPO serves as a reminder that while financial performance is critical, investor sentiment and market demand play an equally important role in determining IPO success.

The Upcoming IPOs in this week and coming weeks are Anlon Healthcare, NIS Management, Sattva Engineering Construction, Globtier Infotech, Current Infraprojects, Anondita Medicare, Classic Electrodes (India), Vikran Engineering, Shivashrit Foods.

The Current active IPO are ARC Insulation & Insulators, Mangal Electrical Industries, LGT Business Connextions, Vikram Solar, Gem Aromatics, Shreeji Shipping Global, Patel Retail.

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