Le Travenues Technology Ltd IPO

Upcoming DRHP

IPO Synopsis

IPO Synopsis
Le Travenues Technology, better known as Ixigo has filed its DRHP with SEBI, to raise Rs.1600 crore. The issue consists of a fresh issue worth Rs.750 crore and an offer for sale of up to Rs.850 crore. As a part of the offer for sale Aloke Bajpai is offloading equity shares worth Rs.50 crore, Rajnish Kumar is offloading shares worth Rs.50 crore, shares worth Rs.550 crore by Saif Partners India IV Limited and shares worth Rs.200 crore by Micromax Informatics Ltd. The book running lead managers to this issue are ICICI Securities, Axis Capital Ltd, Kotak Mahindra Capital Company Ltd and NOMURA Financial Advisory and Securities Pvt Ltd. 
The objective of the issue is to keep aside Rs.540 crore of the net proceeds to fund organic and inorganic growth and the rest for general corporate purposes. 
 

About Le Travenues Technology Ltd

About the company
Launched in 2007 by Aloke Bajpai and Rajnish Kumar, Ixigo is a platform that helps customers book and track trips, book flights, trains, buses, cabs, hotels and other destination. The company is the largest  online travel agency for trains. Their train related apps include ConfirmTkt and Ixigo trains account for 42% of the market share in terms of rail bookings, for IRCTC, in FY21. The bus focused app- AbhiBus  was the second largest bus ticketing online traveling agency in FY21, with a market share of 10%. Ixigo also has 12% market share for online air bookings in FY21. The company also has the highest number of app usages in the OTA platform in FY21, standing at 37.48 million users. 
Yearly downloads for the mobile apps in FY21, FY20 and FY19 stand at 62.83 million, 69.61 million and 43.80 million, respectively. ConfirmTkt and Ixigo has the largest share in the train segment, standing at 42%. 
The company rasied $53 million from various investors in a pre-IPO round, in August. Since it started its operations in 2007, the company has raised $58 million in primary capital and $82 million from secondary sale of shares, which takes the total to $140 million. This makes the company one of the lowest funded consumer tech startups in the country to touch the capital market. 

OTAs were struggling long before the pandemic came into the picture. Failure to reach targets, unfavorable exchange rates, a rising tide of bookings, disruptions and cancellations was common place. Eight key public OTAs in the US reported a cumulative earning of $342.6 billion in FY2020.
 

Financials:

Particulars (In Rs Cr)

FY21

FY20

FY19

Revenue from operations

135.56

111.60

40.36

PAT

7.53

(26.61)

(57.35)

EPS

99.25

(367.88)

(793.12)

 

Particulars (In Rs Cr)

FY21

FY20

FY19

Total Assets

181.33

70.13

60.40

Total Borrowings

14.94

232.57

215.54

Equity share capital

0.043

0.043

0.043

 

Peer comparison:

Company

(In Rs)

Gross Transaction Value (In bn)

Revenue

(In bn)

Employee strength

Monthly downloads (In mn)

Ixigo

21.5

1.35

200

3.5

MakeMyTrip

117

11.70

3,200

0.8

Yatra

14.7

1.20

2,000

0.07

EaseMyTrip

21.2

1.06

420

0.2


The Key points are-

Key Points

  • Strengths

    1. The company was ranked as the top OTA on Google Play store on July 2021, depending on the usage and engagement
    2. The company is led by a pair of very skillful and experienced top management with a significant industry experience
    3. The technology driven costs lead to lower operational costs. This leads to a higher operating margin which will decrease with economies of scale
     

  • Risks

    1. A general decline in travel, like during the lock-down, adversely impacts the operations and revenues of the company
    2. The train ticketing services provided by the company is solely dependent on their agreement with IRCTC. In case of the agreement falling through, it will have a material impact on the company
    3. If the company fails to keep up with the technological infrastructure of any of its platforms, it will lead to consumer dissatisfaction, which will in turn adversely impact the finances and business of the company
    4. The high amount of personal data used and stored by the company could be victim to cyber attacks and consequently the company could lose goodwill in the market

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  • Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

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  • Approve the mandate request on your UPI and funds will be blocked

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