Updated: March 8, 2021 9:19:01 pm
The initial public offering (IPO) of Easy Trip Planners, which operates the online travel platform EaseMyTrip.com, opened for subscription earlier today and got oversubscribed within a few hours itself. So far, the issue was subscribed 2.33 times by the end of the first day of bidding.
It received a demand for 3,51,05,760 shares across both the stock exchanges against 1,50,80,644 shares on offer, data from National Stock Exchange (NSE) showed.
The Easy Trip Planners IPO will be available for subscription till Wednesday, March 10, 2021, and the price band of the East Delhi-based firm has been fixed at Rs 186-187 per share. The public issue is expected to fetch up to Rs 510 crore at the upper end of the price band.
Investors who wish to subscribe to Easy Trip Planners IPO can bid in a lot of 80 equity shares and multiples thereafter. At the upper price band, they will be shelling out Rs 14,960 to get a single lot of Easy Trip Planners. The shares will be listed on both BSE as well as the National Stock Exchange (NSE).
The applicants should also note that the cut-off time for UPI mandate confirmation is Friday, March 12, 2021, upto 12:00 pm. If they fail to do so then their application may not be considered.
Easy Trip Planners IPO is entirely an offer-for-sale (OFS) through which its founders Nishant Pitti and Rikant Pitti will each sell shares to the tune of Rs 255 crore. Nishant Pitti and Rikant Pitti hold 49.81 per cent and 49.68 per cent stake, respectively, in the company.
The object of the public issue is to achieve the benefits of listing the equity shares on stock exchanges. Easy Trip Planners expects that listing the equity shares will enhance its visibility and brand and provide liquidity to its existing shareholders.
Axis Capital and JM Financial are the book running lead managers to the EaseMyTrip IPO while KFin Technologies is the registrar of the issue.
The research teams at Geojit Financial Services, Motilal Oswal Financial Services and Anand Rathi Share and Stock Brokers in their respective notes have all recommended “Subscribe” to the offer.
Geojit Research in its IPO note said, “At the upper price band of Rs 187, ETPL is available at P/E of 49x (annualized basis on FY21E EPS of Rs.3.8) which is fairly priced. With no listed peers and as travel business is expected to pick up its charm going forward, we assign a “Subscribe” rating for the issue on a long-term basis considering the wide distribution network, rising digitalization, negligible debt and asset light business model of the company.”
Motilal Oswal Retail Research in its IPO note stated that, “We like ETPL given its lean business model, differentiated offering and strong customer connect. However the travel industry which was significantly impacted due to Covid-19, is likely to take much longer time to revive; though recovery is visible and 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. Thus we recommend Subscribe to the IPO.”
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