Ixigo, an Online Travel Aggregator (OTA), puts a hold on its IPO amid a weak economic environment. As the news broke out, it put investors in a dilemma who wanted to invest in Ixigo IPO shares. In December 2021, Ixigo received a green light from the Securities and Exchange Board of India (SEBI) for its IPO of Rs 1600 crore. The company decided to put a hold on the IPO indefinitely, which might affect your investment planning. This write-up will discuss the prominent reason behind the postponed Ixigo IPO.
Details Of An Ixigo Initial Public Offering (IPO)
Ixigo, also known as LE Travenues Technology is India’s leading online travel aggregator. It allows travellers to book buses, trains, hotels, and cabs from the comfort of home. Along with booking, users can easily manage their trips by using Ixigo App and website. Two years ago, the company decided to bring its IPO, which was recently postponed for various reasons. It is also considered an Ixigo approach to fight against market slowdown. Here are details of the Ixigo IPO:
|Details Of Ixigo IPO
|Rs 1600 crore
|Issue Price Band
|Availability Of IPO Shares
|Face Value Per Equity
When filing IPO papers with SEBI, Ixigo planned to raise Rs 1600 crore through a public offer. According to the DRHP filed by the company, it comprised Rs 850 crore as an Offer For Sale (OFS) and Rs 750 crore as a fresh issue of equity shares. The news of the postponed IPO is disappointing for investors, and they have to wait longer. However, Ixigo unlisted shares are still available for investment and perform well.
Reasons Why Ixigo Postponed Its IPO Of Rs 1600 Crore
In March 2023, Ixigo officials clarified that they postponed the IPO of Rs 1600 crore due to the current market conditions. In a recent interview with the Hindu BusinessLine, Aloke Bajpai, Co-founder and Group CEO of Ixigo, said that “Given the state of the markets, which haven’t eased out over the past six months, and neither are they stable at the moment with the SVB and other financial crises, the time isn’t right at the moment. Hence, it didn’t make sense for us to go for an IPO right now.”
In addition, Ixigo doesn’t share any definite timeline regarding its future IPO launch. Bajpai also stated that its company was looking to utilise 23% of the net proceeds from an IPO for general corporate purposes. However, due to the negative market sentiments, it postponed its IPO and plans for a global business expansion in the coming years. Until now, Ixigo raised $88 million in funding from Elevating Capital, Sequoia India, InfoEdge, Fosun RZ, etc. Here’s why Ixigo postponed its IPO:
Unstable Market Conditions
One of the prominent reasons shared by Ixigo’s co-founder behind the company’s decision to postpone the IPO is the unstable market conditions. In the last six months, the financial crisis feared the company regarding its future financial conditions. That’s why the company focuses on its business growth rather than launching its IPO.
Rely On Free Cash Flow
As per the financial performance of Ixigo, it reported a positive cash flow in the last few years. Aloke Bajpai himself clarified in an interview that Ixigo’s goal of an IPO is gaining and unleashing growth, not the cash. The company grew five times after the Covid19 and entirely relied on its free cash flow.
Global Business Expansion
As mentioned, Ixigo is currently planning its global business expansion, which depends on venture capital to fulfil its acquisition needs. It is one of the significant reasons Ixigo decided to put a hold on its IPO plans indefinitely. However, the company still allows investors to buy Ixigo unlisted shares using an online trading platform like Stockify.
Invest In Ixigo Pre-IPO Shares Hassle-Free With Stockify
Amid the economic slowdown and recession, Ixigo managed its business growth and performed exceptionally. In addition, Ixigo unlisted shares also showed positive growth, which presents investing opportunities for retail investors. At Stockify, you can buy unlisted shares of Ixigo by following the simple steps. We have a knowledgeable team of share brokers who help you understand the financial performance of pre-IPO stocks. To buy Ixigo unlisted shares, get in touch with us.
1- What Is The Ixigo IPO Size?
The IPO size of Ixigo is Rs 1600 crore. Its IPO comprises Rs 750 crore for new issues and Rs 850 crore offers for sale. For more info about Ixigo IPO, connect with us.
2- How Can I Invest In Ixigo IPO Shares Online?
Since the IPO of Ixigo is not yet launched, you can’t invest in its IPO shares. However, you can easily buy Ixigo unlisted shares with the help of Stockify.
3- What Is The Price Of Ixigo Pre-IPO Shares?
Ixigo share price keeps changing and largely depends on the company’s current performance in the market. As per the recent market data, Ixigo share price today is Rs 96. For getting future updates regarding price and other information, subscribe to Stockify.
4- Can I Buy Or Sell Ixigo Unlisted Shares Online?
You can buy or sell Ixigo unlisted shares online using Stockify, India’s best online trading platform. Here, you will get access to pre-IPO stocks of top-performing companies along with expert guidance.
5- Is Investing In Ixigo Pre-IPO Stocks Before Its IPO Profitable?
Investing in Ixigo unlisted shares before an IPO is profitable because it provides early access to Ixigo IPO stocks when the company gets listed in the future.