The Rs 510 crore initial public offering (IPO) of the online travel company, which operates EaseMyTrip.com, had received a strong response from investors as the issue got subscribed 159 times. The portion reserved for retail investors was subscribed 70 times, qualified institutional buyers category was subscribed 78 times and non-institutional category received 382 times subscription.
The company will not receive any proceeds from this offer as the prime purpose of the issue is to enhance visibility, brand, provide liquidity to existing shareholders and achieve benefits of listing shares on exchanges.
Easy Trip Planners offers a comprehensive range of travel-related products and services for end-to-end travel solutions, including airline tickets (94 per cent of revenues), hotels and holiday packages(5 per cent of revenues), 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.
Online penetration of hotels is expected to increase from 21-26 per cent in FY20 to 29-31 per cent in FY23E. Further, margins in the hotel & holiday packages business are higher compared to airline ticketing. Hence, in order to capture this, the company intends to focus on direct tie-ups with hotels & hotel suppliers and expand its presence in hotels outside India. Taking cognisance of the huge growth opportunities for EaseMyTrip and a lean cost of operations that would aid flow of profitability to the bottomline, analyst at ICICI Securities said in an IPO note.
Easy Trip has no listed peers in the domestic market, having a similar operating model although it faces competition from private players like Cleartrip, MakeMyTrip and Yatra Online.