Ixigo, a popular travel aggregator, made a stellar debut on the stock exchanges today, opening significantly higher than the issue price. The company’s shares opened at Rs 138.10 per share on the NSE, marking a remarkable 48.5% increase from the issue price of Rs 93. Similarly, on the BSE, the shares opened at Rs 135 apiece, up by 45.16% from the issue price.
The robust debut of ixigo exceeded market expectations, as trends in the grey market had earlier indicated a debut with around 30% listing gains for the stock. The company’s Rs 720 crore public offer received a stellar response from investors, with a subscription rate of 98.34 times. Non-Institutional Investors (NIIs) led from the front and subscribed the portion set aside for them 110.5 times, showcasing strong investor confidence in the company.
Qualified Institutional Buyers (QIBs) also showed significant interest, bidding for their allotted portion 106.7 times. The portion set aside for retail investors was not far behind, getting subscribed 54.8 times. These subscription numbers made Ixigo the 10th most subscribed IPO of 2024, underlining its popularity among investors.
The company plans to utilize the net proceeds from the issue to partially fund its working capital needs, invest in cloud infrastructure and technology, finance potential acquisitions and other strategic initiatives, and cover general corporate expenses, showcasing a clear roadmap for growth and expansion.
Industry experts, such as Shivani Nyati from Swastika Investmart Ltd., have lauded Ixigo’s strong debut on the stock market. Nyati emphasized the impressive gain over the issue price, highlighting the overwhelming investor response during the IPO. With Le Travenues Technology Ltd.’s AI-powered operations and strong revenue growth, the company is well-positioned to benefit from the growing travel sector.
Parth Shah, a Research Analyst at StoxBox, echoed similar sentiments, advising investors to hold their position with a stop loss strategy for long-term gains. The positive reception of Ixigo on the stock exchanges reflects investor confidence in the company’s long-term growth prospects within the online travel sector, aligning with the optimistic outlook for the travel industry in India.
