Easy Trip IPO subscribed 160x; here’s how much premium investors are paying in unlisted market

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Investors in unlisted market are paying a premium of Rs 145 per share for Easy Trip Planners, whose IPO has been subscribed 159.96 times on the last day of the bidding process till 4 pm.

The initial public offer (IPO) comprises an offer for sale aggregating up to Rs 510 crore and is in a price range of Rs 186-187 per share.

Abhay Doshi, founder, UnlistedArena.com, dealing in Pre-IPO and unlisted shares said the premium of Easy Trip Planners have declined to Rs 145 from Rs 160-165 a few days back.

Another dealer also said the premium is hovering between at Rs 145-150 in the grey market.

The public offer of the company, which was opened for subscription on March 8, has received bids for 239 crore shares against 1.50 crore shares offered by the Easy Trip Planners.

The portion meant for qualified institutional buyers (QIBs) was subscribed 77.95 times so far, while those for non-institutional investors 384.26 times and retail individual investors (RIIs) 69.54 times.

Easy Trip Planners last week raised a little over Rs 229 crore from anchor investors.

EaseMyTrip.com is operated by Easy Trip Planners Private. Through the IPO, the company’s founders Nishant Pitti and Rikant Pitti will each sell shares to the tune of Rs 255 crore through the offer-for-sale mechanism.

Nishant Pitti and Rikant Pitti hold 49.81% and 49.68% stake, respectively, in the company.

Founded in 2008, Easy Trip Planners is an online travel agency market with offices across various Indian cities, including Noida, Bengaluru, Mumbai and Hyderabad.

Its international offices (as subsidiary companies) are located in Singapore, the UAE and the UK. Axis Capital Limited and JM Financial Limited are the managers of the offer.

Most of the brokerages gave subscribe rating to the IPO. Ventura Securities said “It is the only player among the key online travel agencies (OTA) in India which has been consistently earning profits. Being 100% bootstrapped, cost efficiency is in the DNA of the company and that has enabled them to manage profitability better than peers.”

Ventura believes that the ‘let go’ of convenience fee coupled with the strong customer connect should enable them to continue to gain market share and ensure sustenance of the high growth trajectory. The company has increased its market share from 3.1% in FY18 to 4.6% in FY20 and has been ranked 2nd among key OTAs in India based on booking volumes for 9MFY21.