The initial public offering of Easy Trip Planners is open for subscription as of March 8, 2021. It is the tenth public issue to enter Dalal Street since the beginning of 2021. Easy trip planner is an online travel agency. With this IPO which would be entirely an Offer for Sale (OFS), they are planning on raising Rs 510 crore. The issue is to remain open for subscription till March 10. The objective of the issue is to provide liquidity to the existing investors by listing the company on bourses.
75% of the shares are reserved for Qualified Institutional Buyers (QIB), 15% for NIIs, and 10% for retail investors. The price band is Rs 186-187 per share in a bid lot of 80 shares and its multiples thereof. 2.73 shares of the company are to be offered. Ahead of this offering, the company has allotted 1.2 crore equity shares at Rs 187 per piece to anchor investors which included Nomura Funds Ireland Public Limited, Bajaj Allianz Life Insurance Company Sundaram Mutual Fund, Aditya Birla Sunlife Insurance Company, Tata Trustee Company, HSBC Global Investment, and Nippon Life India Trustee Company. The company has always had a healthy financial track record and has been profitable consistently over the past three years. 98% of the booking revenues come from airline tickets and 1 % each from holiday packages, hotels, and other sources.
Due to the pandemic, Easy Trip Planners reported a 56.3% and 61.6% on-year drop in their gross booking volume and revenues. The major risks associated with the firm are its high level of dependence on airline ticketing business from a small number of airlines and at the same time they face competition from other emerging as well as established players in the industry. According to Choice Broking, Easy Trip would demand a P/E multiple of 58.6x with a higher price band of Rs 187. Choice broking says the company has advantages in terms of a scalable business model, cash generation ability, and business growth over the sector. Therefore, it would give the company a ‘Subscribe’ rating.
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