Easy Trip Planners share sale via initial public offering (IPO) was fully subscribed on the first day of the issue, data from the National Stock Exchange showed. Easy Trip Planners IPO was subscribed 2.33 times by the end of the first day of bidding. Easy Trip Planners received over 3.5 crore bids for its shares compared with 1.51 crore shares on the offer in the ongoing IPO. Retail investors showed great deal of interest in the IPO as the portion reserved for them was subscribed over six times.
Portion for non-institutional buyers was subscribed 0.02 times and qualified institutional buyers were absent on the first day.
Easy Trip Planners shares were in huge demand as the IPO was fully subscribed within hours of opening. By 12:00 pm, the IPO was subscribed.
Easy Trip Planners is selling shares in the price band of RS 186-187 per share, fetching the company Rs 510 crore at the higher end of the price band. The shares of the online travel company are likely to be listed on the BSE and NSE on March 19, 2021.
Easy Trip Planners was incorporated in 2008. It is the second largest online travel agency in India in terms of gross revenue and offers online traveling services through its website, as well as Android and IOS mobile app.
Domestic brokerage firm Anand Rathi has a ‘subscribe’ rating on the stock. “At the upper end of the IPO price band, it is offered at 58.62 times its FY20 earnings, with a market cap of Rs 2,032 crores. There are no listed entities in India whose business portfolio is comparable with that of its business.
Given the company’s strong operating and financial performance in a highly competitive and growing industry; including strong margins, return on net worth of 32.58 per cent in FY20, strong balance sheet and management – we give this IPO a Subscribe rating,” Anand Rathi said in a note.
Easy Trip Planners IPO is an offer for sale by founder promoters, Nishant Pitti and Rikant Pittie. Nishant holds 49.81 per cent stake and Rikant has 49.68 per cent in the company. A total of up to 75 per cent of the issue is reserved for qualified institutional buyers, 15 per cent for non-institutional investors and 10 per cent for retail investors.
Investors can apply for a minimum one lot of 80 equity shares and a maximum of 13 lots.