Ixigo IPO: Travel, ticket booking platform files 1,600 crore IPO; Check company details

The operators of the travel platform Ixigo, Le Travenues Technology Ltd has filed for a draft red herring prospectus with the Securities Exchange Board of India (SEBI) and hope to raise ₹1,600 crores through an initial public offering (IPO). The IPO issued has a fresh issue of ₹750 crores and an offer for the sale of ₹850 crores by its existing investors. The offer for sale (OFS) has sales of ₹50 crores by Aloke Bajpai, ₹50 crores by Rajnish Kumar, ₹550 crores by Saif Partners India IV and ₹200 crores by Micromax Informatics. As of now, Aloke Bajpai owns a 9.18% stake in the firm, Rajnish Kumar has 8.79%, SAIF Partners owns 23.97% and Micromax owns a 7.61% stake in the firm. The lead managers to the issue are ICICI Securities, Axis Capital, Kotak Mahindra Capital, Nomura Financial Advisory and Securities.

The amount raised from the IPO will be invested in organic and inorganic growth initiatives. Organic growth activities are those costs that occurred due to discounts and other promotional incentives to attract new users to OTA platforms along with other forms of sales, marketing and distribution expenses. The investments made in the development of their technology infrastructure is also an organic growth feature. Inorganic growth activities are simple acquisitions and other strategic moves to grow the firm size.

What is Ixigo?

Ixigo was launched by Aloke Bajpai and Rajnish Kumar in 2007 as they wanted to improve the planning structure of Indian holiday travellers. They took over the bookings of rail, air, buses and hotels and helped in managing the trip. Ixigo helped travellers to make better decisions by using artificial intelligence, machine learning and data science to create OTA platforms like their website and the app. Its app allows travellers to book train tickets, flight tickets, bus tickets, hotels and cabs. It provides travel utility tools and services developed that uses complex algorithms and open information to help users with train PNR status and confirmation predictions, tells the user if the seats are available in a train, live train status including updates and delay predictions. It also helps in predicting the flight status, bus status with its pricing and availability of seats.