India: Easy Trip IPO gets subscribed 2.34 times on first day

The 510-crore initial public offering (IPO) of ticket-booking site Easy Trip Planners Ltd (ETPL) was subscribed 2.34 times on the first day on Monday, with the retail portion leading with a 12.64 times subscription.

The IPO received 35.11 million bids against the issue size of 15 million shares, according to stock exchange data. Retail investors placed 34.48 million bids against the 2.74 million shares on offer, while the portion reserved for non-institutional investors was subscribed 0.15 times. Qualified institutional bidders were yet to place their bids.The share sale will close on Wednesday.

The issue is entirely an offer for sale by promoters Nishant and Rikant Pitti, who are offering shares worth 255 crore each, at a price band of 186-187 apiece. Analysts said the grey market premium for the shares was around 90%, or 160-165 on Monday.

“We like ETPL given its lean business model, differentiated offering and strong customer connect. However, the travel industry which has been significantly impacted due to covid-19, is likely to take much longer to revive, though recovery is visible and the vaccination drive would further propel it. The issue is valued at 49.9x FY21E P/E on an annualized basis. Being the first in the segment to get listed in India, ETPL could generate high investor interest,” said Motilal Oswal in a note to investors.

The listing will be on or around 19 March. Nishant and Rikant Pitti hold a 49.81% and a 49.68% stake, respectively, in the company. Earlier, Easy Trip had allocated 12.20 million shares to anchor investors at 187 apiece, raising 229.49 crore from 35 entities, including 26 mutual fund schemes.

Axis Capital and JM Financial are managing the IPO.

The company offers a comprehensive range of travel-related products and services for end-to-end travel solutions, including airline tickets, hotels and holiday packages, rail tickets, bus tickets and taxis, besides ancillary value-added services such as travel insurance, visa processing and tickets for activities.

This article was first published on livemint.com.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.