Ixigo listing: Shares debut with strong listing gains at 48.5% premium against IPO issue price

Le Travenues Technology, the parent company of travel aggregator platform Ixigo made a strong debut on the stock exchanges on Tuesday in line with the overall market momentum. On the BSE, the stock listed at a premium of 45.16 per cent at Rs 135 as against the issue price of Rs 93 apiece, while on the NSE it started trade at Rs 138.1 per share, a premium of 48.5 per cent.

The IPO of the company drew a good response with a total subscription of 98.3 times. The retail portion of the issue was subscribed 54.69 times, and the non-institutional category's subscription rate stood at 110.5 times. The allocation for qualified institutional buyers (QIBs) was booked 106.73 times.

Zee Business Managing Editor Anil Singhvi expects the company to list in the range of Rs 120-130 per share. At the launch of the issue, the expert advised investors to subscribe to the issue for good listing gains and long term. For short term investors, he advised keeping a stop loss of Rs 110, while for long term investors he advises a ‘hold’ strategy on the counter. Further, he added that those who didn’t get the allotment can ‘buy’ the counter if it comes in the range of Rs 100-110 by any chance. 

Shivani Nyati, Head of Wealth, Swastika Investmart expected the company to make a decent debut considering the current grey market premium (GMP) of Rs 29.5, translating to a significant 32 per cent premium above the issue price. This excitement aligns with the overwhelming investor response – a whopping 98 times subscription.

However, investors should be mindful of certain risks. High customer acquisition costs, fierce competition within the industry, and dependence on a variety of travel suppliers pose potential challenges. While the IPO valuation appears on the higher side, the company's strong brands and long-term growth potential in the online travel sector suggest a decent listing, she added.

Le Travenues thrives in India's rapidly growing online travel market. Its established brand presence (ixigo, AbhiBus), AI-powered operations, and diversified business model position it for continued growth. Additionally, the company has demonstrated a strong post-pandemic recovery with impressive revenue and profit gains.