Ixigo eyes mega IPO backed by Budget boost to rail infra & amp
New Delhi, February 5: As the startup IPO boom is set to continue in 2022, travel tech major Ixigo is eyeing a robust stock market debut on the back of a forward-looking and infrastructure focused Union Budget for FY23.
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According to the company, the announcement of new Vande Bharat trains over the next three years and further support for the hospitality sector under ECLGS scheme would in turn support the travel industry and boost consumer demand in the sector. In December, the Securities and Exchange Board of India (SEBI) gave its approval for Le Travenues Technology Limited which manages the travel platform Ixigo to raise Rs.1600 Cr. through initial public offering.
It plans to raise Rs 750 crore in fresh issue and Rs 850 crore in an offer-for-sale. Elevation Capital, with a 24 percent interest in the company, is the largest shareholder in the travel booking company, followed by SCI Investments, with a 16.02 percent stake, and Gamnat, with a 9.89 percent stake. Aloke Bajpai and Rajnish Kumar, the company's co-founders, own 9.18 percent and 8.79 percent of the company, respectively.
"This year's budget has been among the most progressive budgets. Along with its focus on startups, the government has also given major push on infrastructure and railways. These measures will result in long term growth and boost demand," said Utkarsh Sinha, Financial Analyst.
The Union Budget for 2022-23 was presented in Lok Sabha by Nirmala Sitharaman, India's Finance Minister, who announced that 400 new-generation Vande Bharat trains with improved energy efficiency and passenger riding experience will be developed and constructed over the next three years. The increased number of trains will lead to higher travel and, as a result, more traffic on booking and reservation platforms such as IRCTC, Ixigo, and Confirmtkt. Because demand would increase, it will be a tremendous opportunity for Ixigo.
-PTC News
