Le Travenues Technology Limited Ixigo Has Submitted a Draft Red Herring Prospectus For a 1600 crore IPO
Le Travenues Technology filed its first draft red herring prospectus in August 2021. Unfortunately, due to unfavorable market sentiment, the public issue had to be temporarily sidelined. However, the upcoming financial year 2023 - 2024, might just be the year the company’s IPO finally hits the shores. Based on the DRHP and its subsequent addendum, here’s what we know about this upcoming public issue.
Company Overview
Incorporated in 2006, Le Travenues Technology is a tech-focused online travel agency. Through their premier platform - ixigo - the company allows individuals to comprehensively plan, book and manage their trips. In addition to flight, rail and bus tickets, the company’s platform also allows booking hotels and accommodations.
While ixigo is the flagship brand of Le Travenues Technology, the company also has other brands under its belt such as abhibus and confirmtkt. The ticket booking platform of Le Travenues extensively uses cutting-edge technology like artificial intelligence (AI) and machine learning (ML).
Some of the other services that Le Travenues Technology offers are a cab booking facility, railway PNR status, train seat availability alerts, running status of trains, buses and flights, personalized recommendations, deal discoveries and instant flight fare alerts.
As per a Frost & Sullivan (F&S) report, Le Travenues Technology has been named as the leading travel ecosystem for the ‘next billion users’.
Company Financials
Le Travenues Technology Limited has published financial data including key metrics in the draft red herring prospectus and its accompanying addendum. Here’s a quick overview.
(figures are in ₹ crores)
|
Particulars |
FY22 | FY21 | FY20 | FY19 |
| Equity Share Capital | 36.97 | 0.043 | 0.043 | 0.043 |
| Net Worth | - | 29.93 | -225.04 | -199.38 |
| Total Borrowings | 2.73 | 14.94 | 232.57 | 215.54 |
| Total Income | 384.9 | 138.4 | 112.95 | 42.65 |
| Restated Profit / Loss | -17.6 | 7.53 | -26.61 | -57.35 |
| Diluted Earnings Per Share (EPS) | -0.66 | 0.25 | -0.92 | -1.98 |
| Net Asset Value (NAV) per equity share | 9.29 | 1.02 | -7.78 | - |
Note: Diluted EPS and Net Asset Value (NAV) are expressed in ₹.
Key Strengths of the Company
Some of the key strengths of Le Travenues Technology Limited as contained in the draft red herring prospectus have been listed below.
- Market leader with a strong focus on the ‘next billion user’ segment
- Operations are driven by technologies like artificial intelligence and machine learning
- Strong brand value due to user-first approach
- Robust unit economics with an organic flywheel and high operating leverage
- Lean organization structure with highly experienced management
Key Risks for the Company
The DRHP filed by the company also goes into detail regarding the key risks surrounding its business. Here’s a closer look.
- General declines or disruptions in the travel industry
- Highly dependent on IRCTC for train ticketing services
- Online travel agency industry is very competitive and is subject to privacy regulations and other regulatory compliances
- Highly dependent on relationships with travel service providers
Details of the IPO
Since Le Travenues Technology Limited has only filed the DRHP, a lot of the information regarding its upcoming ipo is unavailable. However, we may get more clarity once the company files its final red herring prospectus. Until then, here’s what we know so far about the IPO.
There are two aspects to the public issue - a fresh issue of shares and an offer for sale. The company plans to raise around ₹750 crores via the fresh issue. A few promoters and selling shareholders of Le Travenues Technology Limited are planning to offload a portion of their stake via an offer for sale (OFS). Around ₹850 crores may be realised by them through the OFS component of the public issue. This puts the total issue size at around ₹1,600 crores.
As with other IPOs, Le Travenues Technology has also reserved portions for certain classes of investors. About 75% of the offer has been set aside for Qualified Institutional Buyers (QIBs), 15% has been reserved for Non-Institutional Investors (NIIs) and around 10% for retail investors.
Objects of the Offer
In the DRHP, Le Travenues Technology Limited claims that the proceeds of ₹750 crores from the fresh issue of shares will be used to fulfil the following objectives.
- For funding organic and inorganic growth initiatives
- For funding general corporate purposes
Conclusion
It has been more than a year since Le Travenues Technology Limited filed its first draft red herring prospectus. And the recent filing of an addendum to the DRHP suggests that the public issue isn’t very far off. If all goes well, we might be able to see the IPO take off in the upcoming financial year 2023 - 2024.
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