India: Easy Trip IPO Gets Subscribed 2.34 Times On First Day

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.

“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.