Le Travenues Technology, the parent company of popular travel booking platform Ixigo, continues to see strong interest from investors on the second day of its initial public offering (IPO). Let’s break down the key details to help you decide if applying for the IPO is right for you.
The Ixigo IPO received bids for nearly twice the number of shares offered on the first day. This translates to a subscription rate of 1.95 times. Here’s a breakdown of how different investor categories participated:
- Retail Individual Investors (RIIs): This category, which includes regular investors like you and me, showed the most enthusiasm, subscribing to their portion over 4 times!
- Non-Institutional Investors (NIIs): These are mostly high net-worth individuals and corporate houses. Their subscription rate was healthy at 2.78 times.
- Qualified Institutional Buyers (QIBs): These are large financial institutions and mutual funds. Their participation was subdued on day one, with a subscription rate of only 12%.
Grey Market Premium (GMP): Holding Steady
The grey market, an unofficial indicator of investor sentiment, is showing some positive signs for Ixigo. As of today, the GMP for Ixigo shares is ₹24. This means that in the grey market, traders are expecting the share price to list at ₹24 above the issue price (between ₹88 and ₹93). However, it’s important to remember that the grey market is unregulated and not always a reliable indicator of actual listing price.
Should You Apply? Weighing the Options
The strong subscription from retail investors and a steady grey market premium suggest that Ixigo’s IPO is generating interest. However, before you decide to apply, here are some crucial factors to consider:
- Growth Potential: The Indian online travel market is booming, and Ixigo is a leader in the segment. This represents a major chance for the company’s growth.
- Financials: Ixigo has shown healthy revenue and profit growth in recent years. However, the company’s valuation based on its current earnings is on the higher side compared to some peers.
- Risks: Like any investment, the IPO carries risks. The success of the company depends on factors like competition, economic conditions, and travel trends.
Market experts are divided on Ixigo’s IPO. Some recommend subscribing with a long-term view, considering the company’s strong brand presence and growth potential. Others advise caution due to the high valuation.
The Final Call:
Ultimately, the decision of whether or not to apply for the Ixigo IPO rests with you. Carefully research the company, understand the risks involved, and consider your own investment goals before making a decision. Remember, IPOs can be volatile, so invest only what you can afford to lose.