Travels & Rentals Limited is a well-established travel service provider based in the heart of Kolkata, India. Operating since 1987 under the Lufthansa City Center brand, the company has been delivering top-tier travel solutions to a diverse range of clients. Their clientele spans various industries, including Chemical, Tea, Oil & Minerals, Steel, Engineering, IT, Healthcare, Refractories, Financial Services, Food Processing, Media & Entertainment, Fashion, Real Estate, and Consulates. Over the years, the company has built a reputation for providing value-added travel solutions supported by end-to-end tech-enabled travel services.

The company is now launching its Initial Public Offering (IPO), providing an opportunity for investors to participate in its continued growth. The Travels & Rentals IPO is scheduled to open on August 29, 2024, and close on September 2, 2024.

IPO Details

The Travels & Rentals Limited IPO is a Fixed Price Issue totaling ₹12.24 crores, consisting entirely of a Fresh Issue of 30.6 lakh shares priced at ₹40 per equity share. The minimum lot size is 3,000 shares, requiring retail investors to invest a minimum of ₹120,000. High-Net-Worth Individuals (HNIs) must invest in a minimum of 2 lots (6,000 shares), amounting to ₹240,000. The allotment date is expected to be September 3, 2024, with the shares anticipated to list on the BSE SME by September 5, 2024.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for the Travels & Rentals Limited IPO is yet to be determined. GMP reflects the potential demand and supply dynamics in the unorganized market before the shares officially list on the stock exchange. However, investors should consider GMP with caution, as it may not accurately predict the IPO's market performance.

Allotment Status

The allotment status for the IPO will be available on September 3, 2024. To check the status:

Visit the IPO allotment status page.

Select Travels & Rentals Limited IPO from the dropdown list.

Enter your application number, PAN, or DP Client ID.

Submit the details to view the allotment status.

Company Overview

Travels & Rentals Limited is guided by Mr. Devendra Bharat Parekh, the company's promoter, who plays a pivotal role in strategic decision-making. Under his leadership, the company has expanded its service offerings, catering to a wide array of industries with customized travel solutions.

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Financial Performance

The company's financial performance has been robust, with significant growth in revenue and profitability over the past three years. Revenue increased from ₹290.59 lakhs in FY22 to ₹803.54 lakhs in FY24, while EBITDA rose from ₹157.49 lakhs in FY22 to ₹434.79 lakhs in FY24. Similarly, Profit After Tax (PAT) increased from ₹69.01 lakhs in FY22 to ₹296.55 lakhs in FY24, indicating strong financial health and operational efficiency.

For the Travels & Rentals IPO, the company is issuing shares at a pre-issue EPS of ₹3.64 and a post-issue EPS of ₹2.64. The pre-issue P/E ratio is 10.99x, and the post-issue P/E ratio is 15.15x, compared to the industry P/E ratio of 32.05x. The company's ROCE for FY24 is 27.54%, and ROE is 26.72%, suggesting that the IPO is fairly priced.

Investment Recommendation

Given the company's strong financial performance and reasonable valuation, the Travels & Rentals Limited IPO is considered a sound investment opportunity. Investors are encouraged to apply for this IPO for both listing gains and long-term growth potential.

Conclusion

The Travels & Rentals Limited IPO offers a promising investment opportunity in a company with a solid track record and a well-established presence in the travel industry. With a robust financial performance, experienced leadership, and a fair pricing strategy, this IPO is an attractive option for investors looking for both short-term and long-term returns. As always, investors should assess their risk tolerance and investment objectives before making a decision.

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