How Did Ixigo Achieve Rs 100 Crore in Pandemic Acquisitions?

Ixigo’s IPO Soars: A Milestone for Founders, Investors, and Stakeholders

The initial public offering (IPO) of travel aggregator Ixigo today marked a significant milestone, not just for the company’s founders, investors, and employees, but also for other key stakeholders.

On its market debut, Ixigo’s shares, priced at Rs 93 each in the IPO, surged to Rs 162 apiece. This impressive performance spotlighted several notable beneficiaries.

Two founders of the Bengaluru-based online train ticketing platform Confirmtkt, Sripad Vaidya and Kotha Dinesh Kumar, saw their individual holdings in Ixigo surpass the Rs 100-crore mark. They sold Confirmtkt to Ixigo in February 2021, just as travel began recovering from the pandemic’s first wave. Each now holds 7.98 million shares in Ixigo.

Ixigo’s acquisition of Hyderabad-based bus ticketing company AbhiBus in a slump sale later that year also paid off. AbhiBus employees, including founder Sudhakar Reddy Chira, were integrated into Ixigo. The shares issued to AbhiBus during the acquisition have now exceeded the Rs 100-crore value.

Early investors reaped the most substantial gains from the Ixigo IPO. SAIF Partners (now Elevation Capital) secured a 22x return on its Rs 63 crore investment, including IPO share sales worth Rs 181 crore and remaining shares valued at Rs 1,118 crore at the current price. Peak XV (formerly Sequoia Capital India) enjoyed a 13x return on its Rs 67 crore investment, with IPO sales of Rs 121 crore and remaining shares worth Rs 745 crore. Micromax achieved a 17x return on its Rs 19 crore investment, having sold shares worth Rs 51 crore in the IPO.

Other investors who retained their shares post-IPO are also seeing significant valuations, though specific return multiples are not available due to undisclosed purchase prices. Gamnat, a fund managed by Singapore’s sovereign wealth fund GIC, holds 36.5 million shares worth Rs 592 crore. Various Singapore government investment arms hold significant stakes in other Indian companies like Zomato, Delhivery, and Nazara. Venture debt fund Trifecta holds 11.57 million shares in Ixigo, currently valued at Rs 187 crore.

Ixigo’s robust debut exceeded market expectations, with grey market trends predicting around 30% listing gains. The Rs 720 crore public offer received an overwhelming response from investors, being subscribed 98.34 times. Non-Institutional Investors (NIIs) led the charge, subscribing to their allotted portion 110.5 times.

Parth Shah, Research Analyst at StoxBox, noted, “With the travel sector set to grow due to increasing GDP, rising incomes, and improved infrastructure, Ixigo is well-positioned to benefit. Investors are advised to hold the shares for the medium to long term.”

Shivani Nyati, Head of Wealth at Swastika Investmart, highlighted Ixigo’s competitive edge with its AI-powered operations. “The company caters to various travel needs, offering a strong foundation, and its impressive revenue and profit growth demonstrate a promising future. Its strong listing showcases investor confidence in its long-term growth prospects within the online travel sector. Investors are advised to hold their position with a stop loss of Rs 111,” she added.