Sequoia Capital-backed ixigo has filed a draft red herring prospectus with market regulator SEBI to launch Rs 1,600-crore IPO.
Sequoia Capital-backed ixigo has filed a draft red herring prospectus with market regulator SEBI to launch Rs 1,600-crore IPO. The issue comprises a fresh issue of equity shares worth Rs 750 crore and an offer for sale (OFS) of up to Rs 850 crore. The OFS consist of sales of up to Rs 50 crore each by Aloke Bajpai and Rajnish Kumar, Rs 550 crore by Saif Partners India IV and Rs 200 crore by Micromax Informatics. Currently, Aloke Bajpai holds 9.18 per cent stake, Rajnish Kumar 8.79 per cent, SAIF Partners 23.97 per cent and Micromax has 7.61 per cent stakes in the firm.
The book running lead managers to the issue are ICICI Securities, Axis Capital, Kotak Mahindra Capital, Nomura Financial Advisory and Securities. Link Intime India Private Ltd will be the registrar to the IPO. There are no comparable listed companies in India that engage in a business similar to that of ixigo.
The net proceeds from the issue will be used for organic and inorganic growth initiatives worth Rs 540 crore. The company will utilise the proceeds towards potential acquisitions and strategic initiatives, and for general corporate purposes. The company expects to utilise at least 40 per cent of net proceeds to be deployed for the overall object of funding organic and inorganic growth initiatives, towards organic growth initiatives, including costs incurred towards discounts and other promotional incentives to attract new users to our OTA platforms, sales, marketing and distribution expenses, and investments in the development of our technology infrastructure. The remaining amount of the net proceeds to be deployed for such object shall be towards funding inorganic growth, through acquisitions and other strategic initiatives.
Launched in 2007 by Aloke Bajpai, Ixigo is focused on empowering travelers to plan, book and manage their travels by leveraging artificial intelligence, machine learning and data science-led innovations. The Gurugram-headquartered company has a user base of over 25 crore.
The growth estimate for FY 2021 is dynamic and range from 7-9%, depending on the severity of the second COVID-19 wave and its lasting impact on the economy, particularly in rural areas. This growth is driven by several macro-economic factors. The travel industry is expanding its overall contribution to the Indian economy as the share of services increases and the economy matures, as organic population demand surges are being met with innovative private enterprises enabled by technology and supported by various government investments.