ixigo gets SEBI nod to raise funds via IPO, Oyo drops listing plans

Le Travenues Technology Limited, the operator of travel booking platform ixigo, has received the final approval from capital market regulator SEBI (Securities and Exchange Board of India) to launch its initial public offering (IPO), according to the regulator's notification.

Backed by SAIF Partners India IV, Peak XV, and Micromax, the Gurugram-based travel company had refiled the draft papers with the SEBI for fundraising via the IPO route in February 2024. This was the second attempt by the company to list its shares on the domestic bourses after it filed a draft red herring prospectus (DRHP) with the regulator in August 2021, which could not materialise due to undisclosed reasons.

The IPO of Ixigo comprises a fresh issue of equity shares worth ₹120 crore and an offer for sale (OFS) of 6,66,77,674 equity shares by the existing shareholders. The fresh equity size in the second attempt was much lower than ₹750 crore proposed in the DRHP filed in 2021. The total issue size of the previous offering was ₹1,600 crore, including OFS of ₹850 crore, which got approval from the regulator in June 2023.

Under the OFS, SAIF Partners India IV, Peak XV Partners Investments V, Micromax Informatics, Placid Holdings, Catalyst Trusteeship, Madison India Capital HC, and co-founders Aloke Bajpai and Rajnish Kumar will offload their stakes in the company.

Out of the proposed ₹120 crore equity capital, the company intends to use ₹45 crore for meeting working capital requirements, and ₹25.8 crore for cloud infrastructure and technology. The remaining fund raised from fresh equities will be utilised for inorganic growth through unidentified acquisitions, other strategic initiatives, and general corporate purposes.

Launched in 2007 by Aloke Bajpai and Rajnish Kumar, Ixigo competes with listed companies such as EaseMyTrip and Yatra Online. Ixigo owns and operates multiple brands -– ixigo flights, ixigo trains, ConfirmTkt, and Abhibus, offering flight, train, buses, and hotels services to its customers through separate apps.

Ixigo's revenue for the nine months ending December 2023 was ₹491 crore, with a net profit of ₹65.7 crore. In the financial year 2022-23, the company's revenue jumped 32% to ₹501 crore YoY and it clocked a profit of ₹23.4 crore for the first time.

SEBI's website also shows that OYO Hotels' parent company Oravel Stays Ltd has withdrawn its IPO papers, thus dropping plans to raise funds via a public issue. The IPO request was withdrawn on May 17, 2024. In January 2024, the capital markets regulator had asked Ritesh Agarwal-led company to refile its draft papers with certain changes.

After filing preliminary initial public offering (IPO) papers in 2021, OYO Hotels' parent company Oravel Stays Ltd filed a revised DRHP on September 19, 2022. The Softbank-backed travel tech firm was earlier aiming to raise funds worth ₹8,430 crore via IPO this year. The proposed offering comprised a fresh issue of shares of up to ₹7,000 crore and an offer for sale worth ₹1,430 crore.