Online travel agency Easy Trip Planners’ Rs 510 crore initial public providing (IPO) is set to open for subscription on March 8, 2021. The corporation has fixed a price tag band of Rs 186-187 per share. The public problem will close on March 10, 2021, for the subscription. The final heard grey market place premium in Easy Trip Planners shares was Rs 150-160 apiece. Delhi based on line travel agency shares have been observed trading at Rs 347, implying a premium of more than 85 per cent more than the problem price tag in the grey market place on Wednesday. Easy Trip Planners is completely an supply-for-sale (OFS), exactly where promoters Nishant Pitti and Rikant Pittie will sell up to Rs 255 crore worth of shares each and every.
Who can bid for how a great deal?
Investors can bid for a minimum of 80 equity shares and in multiples thereafter, translating to a minimum bidding quantity of Rs 14,960 at the larger finish of the price tag band. Up to 75 per cent portion of the net problem (Rs 382.50 crore) will be reserved for Qualified Institutional Buyers (QIBs) and not more than 15 per cent of the supply (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.
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The book operating lead managers to the problem are Axis Capital Ltd and JM Financial Ltd, whilst the registrar to Easy Trip Planners problem is KFin technologies Private Ltd. Abhay Doshi, Founder, UnlistedArena.com, dealing in Pre-IPO & Unlisted Shares, told TheSpuzz Online that Easy Trip Planners operates below a very competitive sector. Covid-19 pandemic has very dented the travel and tourism business. However, the corporation delivers a extensive variety of travel-associated merchandise and services i.e Airline Ticket, Hotel, Holiday packages, Rail ticket, and so forth. Doshi mentioned that the CAGR development of gross booking income in fiscal 2018-2020 stood at 47 per cent which was the highest amongst 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 mentioned.
The corporation does not have any listed business peers in India. The essential players in the domestic on line travel agency market place contain Cleartrip Private Limited, MakeMytrip Limited and Yatra Online Inc. Easy Trip Planners has entered into different agreements with third parties, such as airlines, GDS and API service providers, channel managers, IRCTC, corporate clients and IATA for conducting enterprise activities. There is no fresh problem of equity shares by the corporation in the supply and the promoter promoting shareholders will be promoting their respective portions of their equity shares in the supply.
Likhita Chepa, Senior Research Analyst at CapitalThrough Global Research Limited, told TheSpuzz Online that though this was the only lucrative on line travel agency amongst the essential on line travel agencies in India through FY18-FY20, in terms of net profit margin contemplating the truth that the sector has been worst hit due to the pandemic and has not recovered to a terrific extent however, the prospects for the close to term look gloomy. “Therefore, investors who are looking for listing gains should limit their expectations from this issue,” Chepa mentioned.