Le Travenues Technology Limited IPO

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They are a technology company dedicated to empowering Indian travelers by facilitating seamless planning, booking, and management of their journeys across rail, air, buses, and hotels. Their vision is to become the most customer-centric travel company, offering the best customer experience to their users. They cater primarily to the ‘next billion user’ market segment, focusing on travel utility and customer experience driven by technology, cost-efficiency, and a culture of innovation.

Product and Services Offering

Their online travel agency (OTA) platforms provide comprehensive travel solutions, including:
i. Train Tickets: Booking and managing train travel with features like PNR status and confirmation predictions, seat availability alerts, running status updates, and delay predictions.
ii. Flight Tickets: Booking and managing air travel with features like flight status updates, automated web check-in, pricing alerts, deal discovery, and instant fare alerts.
iii. Bus Tickets: Booking and managing bus travel with features like bus running status and availability alerts.
iv. Hotel Bookings: Booking accommodations with personalized recommendations.
v. Travel Utility Tools: AI-based travel itinerary planner and automated customer support services, leveraging in-house proprietary algorithms and crowd-sourced information.

Market Leadership and Growth

According to the F&S Report, they are the leading OTA for the ‘next billion users’, focusing on localized content and app features tailored to Tier II and Tier III travelers. They were the second largest OTA in India by consolidated revenue from operations in Fiscal 2023. Their various platforms—ixigo flights, ixigo trains, ConfirmTkt, and AbhiBus—have seen the highest usage and engagement among all key OTA players and standalone transactional train mobile apps in India in terms of Monthly Active Users and sessions.

Market Share and Performance

i. Rail Booking: They are the largest Indian train ticket distributor in the OTA rail market, with a 51% market share as of March 31, 2023. Their market share increased from 46.4% in the first half of Fiscal 2023 to 52.4% in the first half of Fiscal 2024.
ii. Bus Ticketing: AbhiBus was the second largest bus-ticketing OTA in India with an 11.5% market share in online bus ticket bookings in Fiscal 2023, increasing to 12.5% in the first half of Fiscal 2024.
iii. Airline OTA Market: They had a market share of nearly 5.2% by volume in the first half of Fiscal 2024, up from 3.3% in Fiscal 2023.

By leveraging their technology-driven approach and a deep understanding of their target market, they continue to drive growth and enhance the travel experience for millions of Indian travelers.

Objects of the Le Travenues Technology Limited IPO:

The company proposes to utilize the Net Proceeds towards funding the following objects: i. Part-funding working capital requirements of the company; ii. Investments in cloud infrastructure and technology; and iii. Funding inorganic growth through unidentified acquisitions and other strategic initiatives and general corporate purposes. Total number of shares issue :- i. Fresh issue is 12,903,226 shares, ii. Offer for sale is 66,677,674 shares.
DRHP of Le Travenues Technology Limited IPO
RHP of Le Travenues Technology Limited IPO

Le Travenues Technology Limited IPO Details:

Open Date: Jun 10 2024
Close Date: Jun 12 2024
Total Shares: 79,580,900
Face Value: ₹ 1 Per Equity Share
Issue Size: 740.10 Cr.
Lot Size: 161 Shares
Issue Price: ₹ 88 - 93 Per Equity Share
Listing At: NSE,BSE
Listing Date: Jun 17 2024

Promoters And Management:

Aloke Bajpai is the Chairman, Managing Director, and Group CEO of the Company, serving since June 3, 2006. He oversees the company's overall management. He holds a B.Tech in Electrical Engineering from IIT Kanpur and an MBA from INSEAD. Previously, he worked at Amadeus in France as a software and system engineer. Aloke is a charter member of TiE and a governing council member of IAMAI. He has received multiple awards, including the Economic Times Startup Awards and the Entrepreneur Awards. Under his leadership, the Company's apps have the highest usage and engagement among key OTA players in India as of September 2023. Rajnish Kumar is the Director and Group Co-CEO of the Company, serving as a Non-Executive Director since April 1, 2010. He advises on new product development, technological advancements, growth marketing, research and AI initiatives, and global talent recruitment. He holds a B.Tech in Computer Science and Engineering from IIT Kanpur. Previously, he worked as a software engineer at Amadeus in France. Under his leadership, the mobile app 'ixigo-trains' became the 8th most downloaded travel app globally in 2022. Rajnish has received several awards, including the Economic Times Startup Awards and the Distinguished Alumnus Award from IIT Kanpur. Shailesh Lakhani is a Non-Executive Director of the Company and has been an investor nominee director on the Board since October 28, 2016. He has been nominated to the Board by Peak XV. He holds a bachelor’s degree in applied science, computer engineering co-operative program from the University of Waterloo, Ontario, Canada and a master’s degree in business administration from Harvard University, Boston, USA.

Financials of Le Travenues Technology Limited IPO:

A. Balance Sheet
Particular (In Million) Mar-21 Mar-22 Mar-23 9M-FY24
Equity Share Capital 0.43 369.75 371.20 372.97
Reserves 299 3,057 3,366 3,998
Borrowings 149 27 5 434
Trade Payables 195 445 361 591
Other Liabilities 1,207 1,485 1,755 1,391
Total Liabilities 1,551 1,958 2,122 2,416
Net Block 4 16 17 17
Capital Work in Progress 0 0 29 0
Investments 3 6 0 364
Other Assets 1,139 3,034 3,320 3,245
Total NC Assets 1,146 3,056 3,367 3,627
Receivables 263 86 119 327
Cash & Bank 305 1,045 926 843
Other Assets 136 1,198 1,448 1,991
Face value 1 1 1 1
B. Profit & Loss Statement
Particular (In Million) Mar-21 Mar-22 Mar-23 9M-FY24
Sales 1,356 3,796 5,013 4,910
Employee Cost 348 952 1,263 1,064
Other Expenses 975 2,967 3,463 3,564
Other Income 28 54 163 61
EBITDA 61 -70 450 343
EBITDA Margin 4.53% -1.83% 8.99% 6.99%
Depreciation 19 78 108 103
Interest 16 28 9 24
Profit before tax 27 -176 207 485
Tax -48 35 -27 -172
Net profit 75 -211 234 657
NPM (%) 5.44% -5.48% 4.52% 13.22%
C. Cash Flow Statement
Particular (In Million) Mar-21 Mar-22 Mar-23 9M-FY24
Cash From Operating Activity
Profit From Operation 85 68 447 380
Receivable -206 193 -30 -203
Payable -88 -53 7 253
Loans And Advances 0 0 -26 25
Other WC Items 62 -488 -35 -263
Working Capital Changes -231 -348 -83 -188
Direct Taxes -6 -64 -57 -38
Net Cash Inflow from Operating Activity -152 -343 307 154
Cash from Investing Activity
Fixed assets purchased -1 -19 -55 -71
Fixed assets sold 1 0.04 1 -0.3
Investments purchased 0 -1,202 -5,387 -4,930
Investment sold 97 842 5,347 4,639
Investment in subsidiaries -112 -60 0 0
Acquisition of companies 0 -1,050 -291 -306
Other investing items -86 -727 605 -70
Net cash inflow from investing activities -102 -2,216 220 -738
Cash from Financing Activity
Proceeds from shares 0 2757 2 2
Proceeds from borrowings 149 50 0 0
Repayment of borrowings -0.2 -200 0 0
Intrest paid fin -5 -20 -1 -7
Financial liabilities -8 -8 -22 -47
Other financing items 0 0.3 0 0
Net Cash Flow -118 19 505 -635

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Le Travenues Technology Limited 501 23 0.60 154.0 93 3,603
Easy Trip Planners Limited 449 134 0.77 47.2 40.6 7,180
Yatra Online Limited 380 8 0.67 N/A 125 2,002
* All the data is as per FY23.

Recommendation on Le Travenues Technology Limited IPO:

Review and Recommendation of Le Travenues Technology by team IZ is 6/10. 1. They are a technology-driven company committed to empowering Indian travellers by facilitating seamless planning, booking, and management of their journeys across rail, air, buses, and hotels. They primarily focus on the 'next billion user' market segment, driven by technology, cost-efficiency, and a culture of innovation. 2. Product and Services Their online travel agency (OTA) platforms provide a comprehensive suite of travel solutions, including: i. Train Tickets                      ii. Flight Tickets                     iii. Bus Tickets iv. Hotel Bookings                v. Travel Utility Tools 3. Market Leadership and Growth They are the leading OTA for the 'next billion users', focusing on localized content and app features tailored to Tier II and Tier III travelers. In Fiscal 2023, they were the second largest OTA in India by consolidated revenue from operations. Their platforms—ixigo flights, ixigo trains, ConfirmTkt, and AbhiBus—have the highest usage and engagement among all key OTA players and standalone transactional train mobile apps in India in terms of Monthly Active Users and sessions. 4. Market Share and Performance i. Rail Booking: As the largest Indian train ticket distributor in the OTA rail market, they held a 51% market share as of March 31, 2023. Their market share increased from 46.4% in the first half of Fiscal 2023 to 52.4% in the first half of Fiscal 2024. ii. Bus Ticketing: AbhiBus was the second largest bus-ticketing OTA in India with an 11.5% market share in online bus ticket bookings in Fiscal 2023, increasing to 12.5% in the first half of Fiscal 2024. iii. Airline OTA Market: They captured nearly 5.2% of the total airline OTA market by volume in the first half of Fiscal 2024, up from 3.3% in Fiscal 2023. 5. Competitive Landscape They operate in a highly competitive and evolving market, facing competition from various online and offline channels. Key players in the domestic OTA market include MakeMyTrip Limited, EaseMyTrip, Yatra.com, and Cleartrip. In the online rail booking segment, their competitors include PayTM, Amazon, RailYatri, MakeMyTrip, and Goibibo. In the bus OTA market, AbhiBus competes with Redbus, Amazon, and PayTM. 6. The Revenue has Increased from Rs.135 Crores in FY21 to Rs.501 Crores in FY23. 7. The EBITDA has Increased from 6 Crores in FY21 to 45 Crores in FY23. 8. The PAT has Increased from 7 Crores in FY21 to 23 Crores in FY23. 9. As per FY23, CFO/EBITDA is 0.99, As per FY24, EPS is 2.26, 10. Market Capitalization is 3,603 Crores & P/E is 41.12x based on FY24.

Lead Manager of Le Travenues Technology Limited IPO:

  1. Axis Capital Limited
  2. DAM Capital Advisors Ltd (Formerly IDFC Securities Ltd)
  3. JM Financial Consultants Private Limited

Registrar of Le Travenues Technology Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Le Travenues Technology Limited Second Floor, Veritas Building, Sector - 53, Golf Course Road, Gurugram - 122 002 Phone: +91 124 668 2111 Email: investors@ixigo.com Website: http://www.ixigo.com/

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