Online travel agent, EaseMyTrip promoters are looking to offload 25 of their stakes through IPO sale. The offer will open as the 10th IPO offer of 2021. According to people aware of the issue, EaseMyTrip is planning to close the IPO listing process by the end of March. Failing to do so would mean reinitiating the process with the regulator. The initial launch plan got delayed because of the outbreak of the pandemic.
The Rs 510 crores IPO will contain offer for sale (OFS) shares from promoters. The company is trying to utilise the high liquidity glut in the market after some of the IPOs made a blockbuster debut. But it may face an uphill task convincing investors when the travel industry is struggling with the effects of COVID-19.
EaseMyTrip is the first in its segment to launch IPO offers in the Indian market. MakeMyTrip and Yatra, the two other digital-first travel agencies, launched IPO offers overseas. Easy Trip Planners needs to launch its IPO before March 31 as its approval from SEBI expires by then.
Anyway, if you are a prospective investor and want to know about the upcoming IPO, here are the details.
- EaseMyTrip IPO is the 10thIPO of 2021, will open for subscription for two days
- EaseMyTrip IPO dates are set at March 8-10, 2021. Individual investors need to bid for a minimum of 80 shares and can increase it up to 13 lots
- The issuer has set EaseMyTrip share price in the range of Rs 186-187. The main objective of the offer is to get the benefits of listing
- The issuer has reserved 75 percent of the issue size for qualified institutional investors, 15 percent for non-institutional investors and only 10 percent for retail investors
- Retail investors need to pay for the IPO shares using UPI
The issuer targets to complete the listing process by March 19, 2021. EaseMyTrip received SEBI nod in January 2020 and has time till March end to meet IPO obligations.
The liquidity is high in the primary market, which every company is trying to tap into with IPO offers. EaseMyTrip is the second largest in the online travel agent segment in terms of gross revenue. Despite COVID restrictions, it managed to earn Rs 31 crores profit from a revenue of Rs 81.57 crores between April and December. However, its gross booking revenue declined by 62 percent till December to Rs 1,220 from Rs 3,179 the year before.
Travel was one of the worst-hit sectors due to the pandemic. However, the domestic air passenger traffic has registered a month-on-month improvement to return to the pre-COVID level in 2021.
Ahead of the IPO, EaseMyTrip shares are trading at a 90 percent premium in the grey market.