Ixigo IPO: A High-Flying Opportunity or a Risky Venture?

Ixigo IPO: A High-Flying Opportunity or a Risky Venture?

Le Travenues Technology Ltd, the parent company of the online travel booking platform Ixigo, launched its initial public offering (IPO) on June 10, 2024. As a significant player in the Indian travel-tech industry, the company aims to raise ₹740.10 crore through this IPO. But is it a smart investment choice for you?

Ixigo IPO: A High-Flying Opportunity or a Risky Venture?


IPO Details

Price Band: ₹88 - ₹93 per share

Issue Size: ₹740.10 crore

Offer Type: Fresh Issue (₹120 crore) and Offer for Sale (OFS) by existing investors (₹620.10 crore)

Lot Size: 161 shares

Listing Date: Tentatively June 18, 2024 (BSE & NSE)

Ixigo's Rise

Ixigo leads the Indian online travel agency (OTA) market with over 83 million monthly active users. It offers an extensive travel booking platform covering flights, trains, buses, and hotels. Recently, they have introduced "ixigo Assured Flex," which allows flexible bookings with minimal cancellation charges.

Financial Performance

Ixigo's revenue has been growing steadily, reaching ₹501.25 crore in FY23. However, the company is still not profitable, which is a significant concern for some investors.

Subscription Status and Market Analysis

The Ixigo IPO has seen strong demand from retail investors and is reportedly oversubscribed. Market analysts, however, have mixed opinions. Some are optimistic about the growth potential of the Indian travel sector, while others are cautious due to Ixigo's lack of profitability and the competitive market.

Should You Invest in Ixigo IPO?

Before investing, carefully consider your investment goals and risk tolerance. Research Ixigo's financials, future plans, and the overall travel-tech industry. Review analyst reports and consult a financial advisor for personalized advice.

Key Takeaways

The Ixigo IPO offers a chance to invest in a growing travel-tech company.

High retail demand and strong app usage are positive indicators.

Concerns include the company's lack of profitability and market competition.

Thorough research and risk assessment are essential before investing.

The Decision

The Ixigo IPO could be a promising investment opportunity, but it comes with risks. Weigh the pros and cons carefully before making your decision. Remember, investing in the stock market requires a well-informed and strategic approach.

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