Easy Trip Planners IPO

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(i) Ease my trip offers the comprehensive range of travel-related products and services for end- o-end travel solutions, including airline tickets, hotels and holiday packages, rail tickets, bus tickets and taxis as well as ancillary value added services such as travel insurance, visa processing and tickets for activities and attractions. Ease my trip is ranked third among the Key Online Travel Agencies in India in terms of gross booking revenues in Fiscal 2019.

(ii) They have been consistently profitable since incorporation, and according to the CRISIL Report, they were the only profitable online travel agency among the Key Online Travel Agencies in India in Fiscals 2017, 2018 and 2019.

(iii) Based on year-on-year growth from Fiscal 2018 to Fiscal 2019 in terms of gross booking revenue and operating revenues, they had the highest growth rate among the Key Online Travel Agencies in India.

(iv) Gross Booking Revenues increased by 51.04% from ₹ 1945 C in Fiscal 2018 to ₹ 2937 Crores in Fiscal 2019, and were ₹ 2019 Crores in the six months ended September 30, 2019. Their market share in the Indian online travel agency industry in terms of gross booking revenues and gross booking revenues for airline ticketing segment was approximately 3.8%, and 4.5% to 5%, respectively, in Fiscal 2019 (Source: CRISIL Report).

Ease my trip Stats:

(i) As of November 30, 2019, they provided their customers with access to more than 400 international and domestic airlines, more than 1,096,400 hotels in India and in international jurisdictions, almost all the railway stations in India as well as bus tickets to and taxi rentals for major cities in India.

(ii) As of March 31, 2019, they had 49,494 travel agents registered with them across almost all major cities in India and according to the CRISIL Report, they had the largest network of travel agents among Key Online Travel Agencies as of such period.
 

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Objects of the Easy Trip Planners IPO:

The objects of the Offer are to achieve the benefits of listing the Equity Shares on the Stock Exchanges and for the sale of up to 2,72,72,727 Equity Shares by the Selling Shareholders
DRHP of Easy Trip Planners IPO
RHP of Easy Trip Planners IPO

Easy Trip Planners IPO Details:

Open Date: Mar 08 2021
Close Date: Mar 10 2021
Total Shares: 2,72,72,727
Face Value: ₹ 2 Per Equity Share
Issue Type: Book Building
Issue Size: 510 Cr.
Lot Size: 80 Shares
Issue Price: ₹ 186-187 Per Equity Share
Listing At: NSE,BSE
Listing Date: Mar 19 2021

Promoters And Management:

(i) Mr. Nishant Pitti is a Whole-time Director and CEO of the Company. He is one of the Promoters and has been associated with the Company since its incorporation. Mr. Nishant Pitti holds a bachelor’s degree in commerce from the University of Delhi and has approximately 11 years of experience in the travel and tourism sector. He is responsible for overall management of the Company, business development and the financial aspect of the Company’s business. (ii) Mr. Rikant Pittie is a Whole-time Director of the Company and has been on the Board since August 8, 2011. He is also one of the Promoters and has been responsible for operations, sales, marketing, human resources and technology in the Company. Mr. Rikant Pittie has attended the course for a bachelor’s degree in technology at Kurukshetra University, Ambala and has approximately eight years of experience in the travel and tourism sector. He has also been awarded the ‘Best Travel Planner of the Year’ award by Magic Media World at the Ravishing Wedding Awards, 2018.

Financials of Easy Trip Planners IPO:

Particulars(Crores) Mar-20 Mar-19 Mar-18 Mar-17
Sales 140 101 100 102
Employee Benefit Expenses 30 22 16 11
Other expenses 94 84 85 65
Operating Profit 16 -5 -1 26
OPM % 11.4% -4.95% -1.00% 25.49%
Other Income 38 50 13 2
Interest 1 3 1 1
Depreciation 0.4 0 0 0
Profit before tax 41 41 10 27
Net Profit 31 23 0 20
No. of shares 10.86 10.86 10.86 10.86
EPS in Rs 2.85 2.21 0.00 1.85

Comparison With Peers:

Companies (in Cr) FY20 FY19
Air ticketing Hotels and holiday  Total Air ticketing Hotels and holiday Total
Easy Trip 4100 58 4200 2894 33 2900
MakeMyTrip 26500 12050 45155 22628 10668 38337
Yatra Online 7700 780 8530 9763 1351 11115
Note: Above figure is Gross revenue of OTA.

Recommendation on Easy Trip Planners IPO:

Review and Recommendation of InvestorZone are 4/10 Pros: 1. OTA companies business is bound to grow in future considering the single window service option wherein customer can book flight, hotel, bus , train etc at one place. 2. Still 25% flight tickets, 25% Rail tickets, and 75% Hotel booking done offline. So lot of market share to capture. The penetration of internet services to the remotest of the places in India will help these OTAs to capture more business. 3. Company is debt-free and asset light model. Cons: 1. The estimated CAGR growth from FY20 to FY23 is just 1-2% which was around 20-25% between FY15-FY19. This shows that Industry is maturing. 2. It is a pure-OFS and company will not receive anything. 3. Ease my trip business is dependent only upon flight booking. 4. Asking valuation 2x as compared to Make my trip, which has more diversified business.  

Lead Manager of Easy Trip Planners IPO:

  1. Axis Capital Limited
  2. JM Financial Consultants Private Limited

Registrar of Easy Trip Planners IPO:

  1. Kfin Technology Private Limited

Discussion on Easy Trip Planners IPO:

14 Comments

    Easy Trip Planners IPO Subscription figures FINAL day at 12 PM

    QIB – 0.28 X
    HNI – 8.32 X
    Retail – 46.48 X

    Total – 10.27 X

    Total Number of Applications 13.05 lakhs approx

    Retail Allotment (Approx) : 1 out of 38 (till now)

    Reply

      GMP is roughly 180 which is almost equivalent to the issue price. I think the only reason for such high GMP is very low retail quota at 10% only.

      Reply

    Ease My Trip:

    Total Shares Outstanding = 108,645,000
    IPO Price = 187
    Mcap = 2000 Crores
    Revenue = 140 Crores
    Mcap/Revenue = 14x

    Make My trip
    Mcap = 25000 Cr
    Revenue = 3500 Cr
    Mcap/Revenue = 7x

    Reply

    Online Travel Agencies?
    OTA means the third party companies which help booking Flights, Bus, Rail, Hotels, travel packages from their platform.

    OTA players revenue generation model.

    1. Sales of Airline ticket = 55-60%

    2. Hotel Booking = 37-38%

    Ease My trip

    98% of revenue comes from flight booking.

    Reply

    1. India’s tourism spending recorded a CAGR of 5.8% from 2014 to 2019, driven by rising incomes and improved availability and affordability of travel.

    2. Domestic tourism has accounted for a dominant share in India’s overall tourism spend, which is 86% in 2019.

    3. Outbound tourism, share is 14% of India’s total tourism spend as of 2019.

    Reply

    QIB Quota = 75%
    HNI =15%
    Retail =10%

    Why retail quota is only 10%?

    As per SEBI there are two routes via company can bring IPO.

    1. Entry Norm I (commonly known as “Profitability Route”)

    The Issuer Company shall meet the following requirements:

    (a) Net Tangible Assets of at least Rs. 3 crores in each of the preceding three full years of which not more than 50% are held in monetary assets. However, the limit of fifty percent on monetary assets shall not be applicable in case the public offer is made entirely through offer for sale.

    (b) Minimum of Rs. 15 crores as average pre-tax operating profit in at least three of the immediately preceding five years.

    (c) Net worth of at least Rs. 1 crore in each of the preceding three full years.

    (d) If the company has changed its name within the last one year, at least 50% revenue for the preceding 1 year should be from the activity suggested by the new name.

    (e) The aggregate of the proposed issue and all previous issues made in the same financial year in terms of issue size does not exceed five times its pre-issue net worth as per the audited balance sheet of the preceding financial year

    2. Entry Norm II (Commonly known as “QIB Route”)

    Issue shall be through book building route, with at least 75% of net offer to the public to be mandatory allotted to the Qualified Institutional Buyers (QIBs). The company shall refund the subscription money if the minimum subscription of QIBs is not attained.

    Ease my trip is at loss at operating level, so that is why they are come up with only 10% Retail quota.

    Reply

    Out of 100 Crores of revenue, 97 Crores comes from flight ticket booking alone.

    Reply

      It’s like a single source of income which has it’s own risks involved…

      Reply

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