Ixigo’s parent Le Travenues Technology refiles draft papers with SEBI to raise funds via IPO

The IPO comprises a combination of fresh issuance of shares valued at ₹120 crore and an offer-for-sale (OFS) of 6,66,77,674 equity shares by existing shareholders, according to the draft red herring prospectus (DRHP) submitted on February 14.

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Among the existing shareholders, SAIF Partners India IV and Peak XV Partners Investments V (previously known as SCI Investments V) will be the primary sellers in the OFS of the professionally managed company, offering 1.94 crore and 1.3 crore equity shares, respectively.

Aloke Bajpai and Rajnish Kumar are set to divest 1.19 crore equity shares each through the Offer for Sale (OFS), while the remaining 1.03 crore shares will be offered by Micromax Informatics, Placid Holdings, and Catalyst Trusteeship (formerly known as Milestone Trusteeship Services) as the trustee of Madison India Opportunities Trust Fund and Madison India Capital HC.

Previously, the Gurugram-based travel aggregator had submitted a draft red herring prospectus to the regulatory body in August 2021, with intentions to raise ₹1,600 crore through its inaugural public offering. This IPO encompassed a fresh issuance of shares valued at ₹750 crore and an Offer For Sale (OFS) of ₹850 crore worth of shares by existing shareholders. Although the regulatory approval for the IPO launch was obtained in June 2023, the company opted not to proceed with the public issue at that time.

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Considering alternative avenues for capital infusion, the company is looking raising up to ₹24 crore through a pre-IPO placement before finalizing the red herring prospectus with the Registrar of Companies.

Le Travenues Technology, the parent company of Ixigo, plans to allocate ₹45 crore of the net proceeds from the fresh issue towards fulfilling working capital requirements, while ₹25.8 crore will be earmarked for investments in cloud infrastructure and technology enhancements. The remaining portion of the fresh issue proceeds will be utilized for potential inorganic growth opportunities, including unidentified acquisitions, as well as for other strategic initiatives and general corporate purposes.

Axis Capital, DAM Capital Advisors, and JM Financial have been appointed as the merchant bankers for the issue.

The online travel agency posted a consolidated net profit of ₹23.4 crore for the fiscal year ending March FY23, marking a significant turnaround from the ₹21.09 crore loss incurred in the preceding year. Meanwhile, revenue from operations surged to ₹501.25 crore from ₹379.6 crore recorded during the corresponding period.

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Published: 14 Feb 2024, 05:56 PM IST