The initial public offering (IPO) of ixigo parent company, Le Travenues Technology Limited, continues to generate buzz as it enters its third day. Here’s a breakdown of the latest updates and a look at whether you should consider applying.
One of the biggest indicators of investor interest is the subscription status. As of today, the ixigo IPO is reportedly oversubscribed by more than 9 times. This means investors have applied for many more shares than what’s actually available. This high level of interest suggests confidence in the company’s future prospects.
The grey market is an unofficial platform where investors trade shares before they are listed on the stock exchange. The premium (GMP) indicates the difference between the IPO price and the expected listing price. Currently, ixigo shares are trading at a premium of ₹25 in the grey market. This suggests that investors in the grey market expect the share price to be ₹25 higher than the IPO price of ₹93 (at the upper end of the price band) upon listing. It’s important to remember that the grey market is unofficial and not a guarantee of actual listing price.
So, Should You Apply?
The strong subscription and positive grey market premium are encouraging signs. Before deciding, take these factors into account:
- Company Financials: Review ixigo’s financial statements to understand its revenue, profitability, and debt levels. Are they on a healthy track?
- Future Growth Potential: Analyze the online travel industry and ixigo’s position within it. Does the company have a clear strategy for future growth?
- Risk Tolerance: The stock market is inherently risky. Are you comfortable with the possibility that the share price might fall after listing?
Here are some tools to assist you in making your decision:
- The ixigo IPO prospectus contains detailed information about the company’s financials, business plans, and risk factors.
- Financial news websites and brokerage reports may offer expert opinions on the IPO.
Remember: Don’t base your decision solely on the hype or grey market premium. Do your own research and only invest money that you can afford to lose.
Key Takeaways:
- The ixigo IPO is oversubscribed, indicating strong investor interest.
- The grey market premium suggests a potential listing gain.
- Do your research before investing. Consider the company’s financials, future prospects, and your own risk tolerance.
By carefully evaluating all the information, you can make an informed decision about whether or not to apply for the ixigo IPO.