In a remarkable turn of events, Ixigo, a prominent player in India’s travel booking industry, has witnessed its market capitalization skyrocket by nearly 80% from its pre-IPO round. This surge is a testament to the company’s robust growth and the confidence investors have placed in its business model and future prospects.
A Stellar Market Debut
The initial public offering (IPO) of Ixigo has been nothing short of spectacular. With the stock price peaking at Rs 165.72, which is a substantial 20% increase from its opening price and a staggering 78.2% rise from the issue price, the company’s market cap now stands at an impressive Rs 6,420 crore ($773 million). This leap from Rs 3,602 crore ($434 million) in the pre-IPO round underscores the significant investor enthusiasm surrounding Ixigo’s market debut.
The company’s financial health has been on display, with operating revenue reaching Rs 491 crore and a commendable profit of Rs 65.7 crore during the first nine months of the last fiscal year. These figures reflect Ixigo’s solid performance and its ability to capitalize on the growing travel industry in India.
The Journey to IPO
Ixigo’s path to its IPO has been paved with strategic funding rounds and partnerships. Notably, in July 2021, the company raised ₹270 crore in a pre-IPO round led by Singapore sovereign wealth fund GIC. This funding round placed an equity valuation of about ₹2,900 crore on Ixigo, setting the stage for a successful public offering.
Furthermore, Ixigo has demonstrated its financial stability through consistent funding over the years. In March 2017, it secured USD 15 million in a Series B round from Sequoia Capital India and Fosun RZ Capital. The pre-IPO round in July 2021 saw an additional USD 53 million raised, bolstering investor confidence just before going public.
The Future Outlook
With Ixigo’s shares now listed on BSE and NSE as of June 18, 2024, the future looks bright for this travel booking giant. The IPO price band was set at ₹88 to ₹93 per share, with a minimum lot size for applications at 161 shares. The successful listing marks a new chapter for Ixigo as it navigates the post-pandemic travel resurgence and leverages technology to enhance customer experiences.
The company’s growth trajectory suggests that it is well-positioned to take advantage of the burgeoning travel sector in India. With a strong financial foundation and a clear strategic direction, Ixigo is poised for continued success in the years to come.
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