Ixigo Shares Debut with Strong Gains at 48.5% Premium Over IPO Price
Ixigo, the travel aggregator platform under Le Travenues Technology, saw its shares make a strong debut on the stock exchanges, reflecting robust market momentum. On the Bombay Stock Exchange (BSE), the stock opened at Rs 135, marking a 45.16% premium over the issue price of Rs 93. The National Stock Exchange (NSE) witnessed an even higher debut, with shares starting at Rs 138.1, a 48.5% premium. The company’s IPO garnered significant interest, with a total subscription rate of 98.3 times. Retail investors subscribed 54.69 times, non-institutional investors 110.5 times, and qualified institutional buyers (QIBs) 106.73 times.
Anil Singhvi, Managing Editor at Zee Business, had anticipated the shares to list between Rs 120 and Rs 130 per share. He had advised investors to subscribe for both short-term gains and long-term holding, suggesting a stop loss at Rs 110 for short-term investors and a ‘hold’ strategy for the long term. Singhvi also recommended buying the stock if it fell to the Rs 100-110 range.
Shivani Nyati, Head of Wealth at Swastika Investmart, also predicted a strong debut based on the grey market premium (GMP) of Rs 29.5, indicating a 32% premium over the issue price. Nyati highlighted the overwhelming investor response and the strong growth potential of the online travel market in India. Despite noting high customer acquisition costs and intense industry competition as potential risks, she pointed out Ixigo’s strong brand presence, AI-powered operations, and diversified business model as significant advantages.
Le Travenues Technology, the parent company of Ixigo, is well-positioned in India’s burgeoning online travel sector. Its established brands, including Ixigo and AbhiBus, have demonstrated a strong post-pandemic recovery with notable revenue and profit increases.
The IPO listing date for Ixigo was set for June 18, 2024. The company’s shares were listed in the ‘B’ group of securities on the BSE, which includes companies of good quality that do not meet the stringent requirements of the ‘A’ group. Market experts expected the listing price to be around Rs 120 to Rs 125, buoyed by the positive grey market signals where shares were trading at a Rs 30 premium.
Parth Shah, a Research Analyst at StoxBox, anticipated a positive debut for Ixigo shares, citing the overwhelming subscription response. Amit Goel, Co-Founder and Chief Global Strategist at Pace 360, projected a listing price between Rs 120 and Rs 125 per share, despite the challenges faced during FY22 due to the pandemic. VLA Ambala, SEBI Registered RA and Co-Founder of SMT, expected a premium listing of 35-50% on the debut date.
The grey market premium (GMP) for Ixigo shares stood at Rs 30 on the listing day, suggesting an expected listing price of around Rs 123, which is 32% higher than the IPO issue price. The strong debut of Ixigo shares underscores the market’s confidence in the company’s growth potential and its position within the rapidly expanding travel sector in India.
About The Author
