Travel portal ixigo's parent firm files draft papers for IPO

Le Travenues Technology Ltd, which operates travel booking platform Ixigo, on Wednesday filed preliminary papers with Sebi to raise funds through an initial public offering.

The Gurugram-based company's Initial Public Offering (IPO) will be a combination of a fresh issue of equity shares worth Rs 120 crore and an Offer For Sale (OFS) of 6.66 crore equity shares by existing shareholders, according to the Draft Red Herring Prospectus (DRHP).

SAIF Partners India IV Ltd, Peak XV Partners Investments V (formerly known as SCI Investments V), Micromax Informatics Ltd, Placid Holdings, Catalyst Trusteeship Ltd, Madison India Capital HC, Aloke Bajpai and Rajnish Kumar will be selling shares through the OFS.

Proceeds worth Rs 45 crore from the fresh issue will be used to fund the company's working capital requirements and Rs 26 crore will be utilised for investments in technology as well as data science, including on cloud and server hosting, technology on artificial intelligence and customer engagement.

Additionally, funds will be used to support inorganic growth through acquisitions, and for general corporate purposes.

Also, the company plans to raise up to Rs 24 crore in a pre-IPO round. If such placement is undertaken, the fresh issue size will be reduced.

Axis Capital, DAM Capital Advisors and JM Financial are the book running lead managers to the public issue.

Le Travenues Technology was launched in 2007 by Aloke Bajpai and Rajnish Kumar. The company helps travellers plan, book and manage their trips across rail, air, buses and hotels.

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The company's total income rose to Rs 517 crore in the financial year ended March 2023 from Rs 385 crore in the preceding fiscal. The firm logged a profit of Rs 23.4 crore for the year ended March 2023 whereas it had a loss of Rs 21 crore in the previous financial year.

According to F&S Report, the total Indian travel market as represented by modes of air, rail, road and hotel is estimated at around Rs 3.8 lakh crore in Fiscal 2023 and expected to grow at a CAGR of around 9 per cent to reach Rs 5.8 lakh crore by Fiscal 2028.

The company had filed draft papers with Sebi in August 2021 to float a Rs 1,600 crore IPO. However, the plan did not take off. The proposed IPO comprised fresh issuance of shares worth Rs 750 crore and an offer of sale of equity shares to the tune of Rs 850 crore by existing shareholders.