• Source:PTI
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Ixigo IPO:  Le Travenues Technology Ltd, which operates the travel booking platform ixigo, said on Friday that its existing shareholders have completed a share sale worth Rs 176.25 crore in a pre-IPO round. The transaction was completed at the upper end of the price band of the company's Rs 740-crore initial public offering (IPO), the company said in a statement.

Ashoka India Equity Investment Trust Plc, Tata Multi-Asset Opportunities Fund, Tata Digital India Fund, Bay Capital Holdings, and Steadview Capital Mauritius are the shareholders that picked up the shares, Ixigo co-founders Aloke Bajpai and Rajnish Kumar told PTI in an interaction.

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The pre-IPO round has been completed ahead of the stabilization round that begins on Friday. The initial sale of shares of the Gurugram-based company will open for public subscription on June 10 and end on June 12. Investors will have the opportunity to bid for the shares at a price ranging between Rs 88-93 per share.

The IPO is a combination of a fresh issue of equity shares worth Rs 120 crore and an offer for sale (OFS) of Rs 620 crore, at the upper end of the price band, by existing shareholders. This translates to a public issue size of Rs 740 crore.

Under the OFS, SAIF Partners India IV Ltd, Peak XV Partners Investments V, Micromax Informatics Ltd, Placid Holdings, Catalyst Trusteeship Ltd, Madison India Capital HC, Bajpai and Kumar will sell shares. Post the issue, Bajpai and Kumar said they would cumulatively hold a 10 percent stake in the company.

Proceeds of Rs 45 lakh crore from the new issue will be used to fund the working capital requirements of the company and Rs 26 lakh crore will be used for investments in technology as well as data science, including cloud hosting, servers, AI technology, and customer engagement.

Additionally, the funds will be used to support inorganic growth through acquisitions and for general corporate purposes. Launched in 2007 by Bajpai and Kumar, Le Travenues Technology is the country's leading online travel company, which helps travelers plan, book, and manage their trips across rail, air, buses, and hotels. The company's total income rose to Rs 517 crore in the financial year ended March 2023 from Rs 385 crore in the previous fiscal. The company had posted a profit of Rs 23.4 crore for the year ended March 2023 while it had incurred a loss of Rs 21 crore in the previous financial year.

Regarding the company going black, Kumar said this can be attributed to Ixigo turning into an online travel aggregator in 2017. Before that, it was a meta-search engine that directed users to platforms like MakeMyTrip and ClearTrip.

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(With PTI Input)