Easy Trip Planners Rs 510-cr IPO opens Mar 8, grey market premium soars; check price band, bid lot size

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Updated: Mar 03, 2021 11:05 AM

Online travel agency Easy Trip Planners' Rs 510 crore initial public offering (IPO) is set to open for subscription on March 8, 2021.

Easy trip planners IPO, initial public offerEasy Trip Planners is entirely an offer-for-sale (OFS), where promoters Nishant Pitti and Rikant Pittie will sell up to Rs 255 crore worth of shares each. Image: Reuters

Online travel agency Easy Trip Planners’ Rs 510 crore initial public offering (IPO) is set to open for subscription on March 8, 2021. The company has fixed a price band of Rs 186-187 per share. The public issue will close on March 10, 2021, for the subscription. The last heard grey market premium in Easy Trip Planners shares was Rs 150-160 apiece. Delhi based online travel agency shares were seen trading at Rs 347, implying a premium of over 85 per cent over the issue price in the grey market on Wednesday. Easy Trip Planners is entirely an offer-for-sale (OFS), where promoters Nishant Pitti and Rikant Pittie will sell up to Rs 255 crore worth of shares each.

Who can bid for how much?

Investors can bid for a minimum of 80 equity shares and in multiples thereafter, translating to a minimum bidding amount of Rs 14,960 at the higher end of the price band. Up to 75 per cent portion of the net issue (Rs 382.50 crore) will be reserved for Qualified Institutional Buyers (QIBs) and not more than 15 per cent of the offer (Rs 76.50 crore) for non-institutional investors (NII). The remaining 10 per cent portion, worth Rs 51 crore will be set aside for retail investors.

Also read: MTAR Technologies IPO opens today; should you subscribe for listing gains, long term or stay away?

The book running lead managers to the issue are Axis Capital Ltd and JM Financial Ltd, while the registrar to Easy Trip Planners issue is KFin technologies Private Ltd. Abhay Doshi, Founder, UnlistedArena.com, dealing in Pre-IPO & Unlisted Shares, told Financial Express Online that Easy Trip Planners operates under a highly competitive sector. Covid-19 pandemic has highly dented the travel and tourism industry. However, the company offers a comprehensive range of travel-related products and services i.e Airline Ticket, Hotel, Holiday packages, Rail ticket, etc. Doshi said that the CAGR growth of gross booking revenue in fiscal 2018-2020 stood at 47 per cent which was the highest among competitors. “The issue may look expensive but the market is in no mood to value such ‘new-age/digital’ companies on traditional methods of valuations. Owing to digital themes playing out, this IPO too will gain elegant response,” Abhay Doshi said.

The company doesn’t have any listed industry peers in India. The key players in the domestic online travel agency market include Cleartrip Private Limited, MakeMytrip Limited and Yatra Online Inc. Easy Trip Planners has entered into various agreements with third parties, including airlines, GDS and API service providers, channel managers, IRCTC, corporate customers and IATA for conducting business activities. There is no fresh issue of equity shares by the company in the offer and the promoter selling shareholders will be selling their respective portions of their equity shares in the offer.

Likhita Chepa, Senior Research Analyst at CapitalVia Global Research Limited, told Financial Express Online that although this was the only profitable online travel agency among the key online travel agencies in India during FY18-FY20, in terms of net profit margin considering the fact that the sector has been worst hit due to the pandemic and has not recovered to a great extent yet, the prospects for the near term look gloomy. “Therefore, investors who are looking for listing gains should limit their expectations from this issue,” Chepa said.

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