Ixigo IPO Garners Significant Demand Across Investor Categories — India Report

The IPO for online travel agency Ixigo saw demand for the shares it offered dramatically exceed the number of shares offered this week.

Investors applied for about 98 times the number of shares in Ixigo’s initial public offering, according to the Indian stock exchange BSE on Wednesday. Demand was strong across all types of investors, including institutional ones and ordinary individuals.

On Friday, the company raised INR 3.33 billion ($40 million) from anchor investors, who are institutional investors invited to subscribe to shares ahead of the IPO opening to the general public.

With the share subscription now over, the allotment of shares is expected to be finalised by Wednesday. The IPO listing is tentatively scheduled for June 18.

The IPO’s full capital infusion into the company will be $89 million, including anchor investors, retail investors, and others.

IPO Timing: It’s been a bit of a rollercoaster ride for Ixigo, which initially filed for an IPO in 2021 and received the green light from regulators the same year. 

“Most tech-listed names were trading below their IPO price in 2022,” Ixigo chairman, managing director and group CEO Aloke Bajpai told Skift in an exclusive first interview. “It was not the ideal environment for us to launch an IPO.”

Fast forward to mid-February this year, and Ixigo decided to take another crack at the IPO, buoyed by two consecutive years of profitability. This time around, the company set its sights on raising a more modest $89 million, a far cry from the $192 million it had originally planned to raise.  

Rajnish Kumar, director and group co-CEO of Ixigo told Skift that the company’s financial performance has been an important driver of its renewed plans for an IPO.

“The company reported consistent profitability, with fiscal 2023 seeing nine months of profits and fiscal 2024 showing even stronger financial health,” Kumar said. “This allowed us to reduce the primary portion of fundraising. We didn’t need that much money.”

Plans for IPO Proceeds: According to the company’s prospect, as accessed by Skift, Ixigo will allocate INR 450 million($5.4 million) towards its working capital requirements. The company will invest INR 258 million ($3.1 million) in cloud infrastructure and technology, while it will also use proceeds to drive inorganic growth through acquisitions and strategic initiatives.

Moscow City Eyes Business Travel From India

The Moscow City Tourism Committee is looking to boost business travel from India. For this, it has launched a new training program as a part of Moscow MICE Ambassadors online certification project. With this, it hopes to pitch the Russian capital as a preferred host destination for MICE (Meetings, Incentives, Conferences, and Exhibitions) events.

The online program targets representatives from the Indian MICE industry. 

According to Moscow City Tourism chairman Evgeny Kozlov, the MICE Ambassadors program is focused on India, as the country is a priority region for the city. “Our objective extends beyond simply boosting the influx of business travelers from India to Moscow; we aim to elevate the standard of services we provide and effectively exhibit our capabilities.” 

India is a key emerging source market for Russia, becoming one of the leading countries in terms of tourist influx to Moscow. According to a statement from Moscow City Tourism, business travel is a key driver for Indian visitors. In 2023, 60,000 Indian tourists visited Moscow.

Russia is currently working with India on a bilateral agreement to allow visa-free group tourist exchanges between the countries. The agreement is expected to be signed by the end of the year.

Radisson Enters West Bengal With 150-Key Hotel

Radisson Hotel Group has entered the state of West Bengal with the signing of Radisson Hotel Siliguri. The 150-room hotel is expected to open in 2028. 

Nikhil Sharma, managing director and area senior vice president – south asia for Radisson, said the region holds immense potential for the country’s hospitality ecosystem due to industrial resources and natural beauty. 

The company currently has 180 hotels in operation and in its pipeline in India, and recently debuted its luxury lifestyle brand, Radisson Collection, in India. 

India is a crucial market for Radisson, Elie Younes, executive vice president and global chief development officer at Radisson Hotel Group told Skift in an earlier interview. “Our expansion plans for 2024 are ambitious, focusing not only on major metropolitan cities but also targeting Tier 2 and Tier 3 towns to cater to the growing demand in these markets,” he said.

Indian Travelers Want On-Site Restaurants, 24-Hour Check-Ins During Stays

Indian travelers seek stay amenities such as on-site restaurants, flexible 24-hour check-ins, in-room air conditioning, breakfast, and secure luggage storage in their choice of accommodations, according to data shared by online travel platform Booking.com. 

The platform further shared that when it comes to in-room facilities, flexible room service, view, power outlet near the bed, in-room temperature control, and access to toiletries are key requirements for Indian travelers. Additionally, they also prefer having a refrigerator, TV with streaming services, desk, and tea kettle in their rooms. 

As Indians are willing to spend more, Booking.com noted that travelers are paying extra for services such as laundry, room upgrades, curated tours or activities, and room service.

RedRail Introduces Gen AI-Powered Chatbot on WhatsApp

Rail ticketing platform redRail has introduced upgrades to its WhatsApp chatbot, including the introduction of Gen AI. The Gen AI-powered chatbot aims to respond to natural language, eliminating the need for customers to put in specific keywords to get a suitable response. 

With this, passengers can send a message to the chatbot to receive real-time updates on PNR status, running status of trains, train schedules and coach positions, as well as informational queries regarding trains. 

The chatbot now also supports Hindi, English, Tamil, Telugu, and Kannada, with support for remaining Indian languages expected to come soon. 

IHG Signs Holiday Inn Resort in Himachal Pradesh’s Kufri

IHG Hotels and Resorts has signed Holiday Inn Resort Kufri in Himachal Pradesh. The 100-key property will open in 2026. 

In a statement, the company said that the signing aligns with its expansion strategy in India as it aims to provide diverse hospitality experiences across leisure destinations in the country.

Sudeep Jain, managing director, South West Asia at IHG said, “The Kufri-Shimla region is a highly sought-after leisure and events destination in India. It attracts a diverse range of travelers, from leisure seekers to business guests attending conferences, and guests seeking destination weddings.”

IHG currently has 45 operational hotels in India, with a pipeline of about 50 hotels set to open in the next 3-5 years. 

Source link

About The Author

Scroll to Top