Travels & Rentals Limited IPO

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Travels & Rentals Limited began its journey in 1990 as a small partnership firm under the name “M/s. Travels & Rentals,” founded by Mr. Devendra Bharat Parekh. With a vision to corporatize and expand the business, the company was incorporated as Travels & Rentals Private Limited in 1996, taking over the assets, liabilities, and goodwill of the original partnership firm. Today, Travels & Rentals Limited stands as a prominent player in the travel industry, offering comprehensive travel solutions.

Franchise Partnerships In 2010, the company became a franchisee of Lufthansa City Center International GmbH (LCCI), a global travel agency network with 580 locations across 105 countries. By 2013, it secured the rights to operate under “Business Plus Lufthansa City Center” in India, leveraging the prestigious Lufthansa brand in its operations. Additionally, in 2023, the company entered into a Sales and Marketing Agreement with Group Voyagers Inc., known for brands like Globus, Cosmos, and Avalon Waterways, to market their travel products in India.

Service Offerings Travels & Rentals Limited offers a wide range of travel-related products and services, providing end-to-end solutions for its clients. These services include:
i. Airline Tickets                         ii. Hotel Reservations             iii. Tour Packages         iv. Rail Tickets
v. Ancillary Services: Such as travel insurance, passport and visa processing, and tickets for various activities and attractions.

With over 25 years of experience, the company specializes in designing personalized tour packages that cater to the unique needs of its clients. The company is accredited by IATA, recognized by the Ministry of Tourism, Government of India, and is a member of TAAI and IATO.

Market Dynamics The travel industry is heavily influenced by geographical and environmental factors. The company understands that customers choose destinations based on the time of year and prevailing conditions at the destination. To address this, Travels & Rentals Limited strives to understand its clients’ needs and consistently delivers services that exceed expectations. The company’s professional approach, along with constant client interaction, ensures that all requirements are met to high standards within the agreed time and cost parameters.

Growth and Infrastructure Travels & Rentals Limited’s impressive growth over the years can be attributed to its confidence in its capabilities and the robust infrastructure it has developed. The company has steadily diversified its offerings and continuously adds new packages to its portfolio. The company’s promoter, Mr. Devendra Bharat Parekh, plays a crucial role in guiding strategic decisions, leveraging his deep industry knowledge to expand the company’s geographical and customer presence.

Team and Capabilities The company is equipped with a motivated and experienced team in sales, operations, and other departments, ensuring that it meets the quality and service expectations of its customers. With the infrastructure, industry knowledge, and market awareness it has built over the years, Travels & Rentals Limited is well-positioned to meet the exact specifications of its clients and explore new growth avenues in the travel industry.

Objects of the Travels & Rentals Limited IPO:

The company proposes to utilize the funds which are being raised through this Issue towards the below-mentioned objects: i. Working Capital Requirement ii. General Corporate Expenses
DRHP of Travels & Rentals Limited IPO
RHP of Travels & Rentals Limited IPO

Travels & Rentals Limited IPO Details:

Open Date: Aug 29 2024
Close Date: Sep 02 2024
Total Shares: 3,060,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 12.24 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 40 Per Equity Share
Listing At: BSE SME
Listing Date: Sep 05 2024

Promoters And Management:

Devendra Bharat Parekh, 53, is the Managing Director of the company, serving on the board since its inception and re-designated as Managing Director on November 7, 2022. A seasoned entrepreneur with over 30 years of experience in business development and project management, he founded Lufthansa City Centre Travels & Rentals and contributes to his family’s auction business, Egbert Andrews Auction Mart. He holds an MBA from Henley Business School, London. Tushar Singhi, 54, has been an Executive Director of the company since September 3, 2019. He holds a Bachelor's degree in Commerce from the University of Calcutta and brings over 30 years of experience in the textile industry. Previously, he was a partner at Apex Trading Company (Bombay Dyeing showroom) from 1993 to 2015 and served as Vice President of Production at Ergoflex (I) Private Limited. He has also been a director at Hindustan Cotton Mills Limited since 2011. Anupama Singhi, 55, was appointed as a Non-Executive Director of the company in December 2023. She chairs the Nomination and Remuneration Committee and the Stakeholder Relationship Committee and serves as a member of the Audit Committee. With 24 years of experience in the outbound travel department at Travels & Rentals Limited, she specializes in coordinating tours and has extensive knowledge of destinations like Australia, Canada, Scotland, and Switzerland, helping clients have better travel experiences.

Financials of Travels & Rentals Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 285 567 753
Other Income 5 12 51
Total Revenue 291 579 804
Employees Benefit Expenses 82 175 200
Other Expenses 46 154 119
EBITDA 163 250 486
OPM (%) 56.01% 43.18% 60.42%
Depreciation & Amortisation 5 7 6
EBIT 158 243 480
Finance Cost 67 29 61
PBT 91 214 419
Tax 22 63 123
PAT 69 151 297
NPM (%) 23.75% 26.01% 36.91%
No.of Shares 112.02 112.02 112.02
EPS 0.61 1.34 2.64

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Travels & Rentals Limited 8 3 2.64 15.1 40 45
Sailani Tours N Travels Limited 23 0.3 0.64 40.8 26 12
* All the data is as per FY24.

Recommendation on Travels & Rentals Limited IPO:

1. Travels & Rentals Limited offer a comprehensive range of travel-related products and services, providing end-to-end travel solutions that include: i. Airline Tickets                              ii. Hotel Reservations and Tour Packages iii. Rail Tickets                                iv. Ancillary Services 2. They specialize in designing personalized tour packages that showcase India uniquely. Their professional approach ensures that each client receives services that exceed their expectations, backed by an accredited network including IATA, Ministry of Tourism recognition, and memberships with TAAI and IATO. 3. SWOT Analysis Strengths: i. Strong relationships within the travel industry and with clients, both nationally and internationally. ii. Experienced, dedicated management team with in-depth industry knowledge. iii. Effective cost management practices. Weaknesses: i. High working capital requirements. ii. Need for more aggressive marketing strategies. iii. Lack of a dedicated mobile app for our online platform. Opportunities: i. Adoption of updated technology to enhance service delivery. ii. Increasing investor interest in the travel and tourism sector. iii. Potential to tap into public equity markets to reduce financing costs. iv. Opportunities to expand into global markets. Threats: i. High vulnerability to external factors such as natural disasters and pandemics. ii. Changing government policies that can impact the travel industry. iii. Intense competition from both traditional and online travel agencies. iv. Pressure from loss-making online agencies offering competitive pricing. 4. Competitive Landscape The travel and tourism industry is highly competitive, with numerous established players and a significant number of unorganized, local operators. A major threat comes from the internet, as many travellers prefer planning their trips independently using online platforms. 5. The Revenue has Increased from Rs.3 Crores in FY22 to Rs.7.5 Crores in FY24. 6. The EBITDA has Increased from 1.6 Crore in FY22 to 5 Crores in FY24. 7. The PAT has Increased from 69 Lakhs in FY22 to 3 Crores in FY24. 8. As per FY24, CFO/EBITDA is 0.89, and EPS is 2.64, 9. Market Capitalization is 45 Crores and P/E is 15.1x based on FY24.

Lead Manager of Travels & Rentals Limited IPO:

  1. Finshore Management Services Limited

Registrar of Travels & Rentals Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

Travels & Rentals Limited 161, Lenin Sarani Dharmatala Kolkata - 700013, Phone: +91 33 40000777 Email: cs@travelsandrentals.com Website: https://www.travelsandrentals.in/

Discussion on Travels & Rentals Limited IPO:

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