The Rs 510-crore initial public offer (IPO) of Easy Trip Planners opened for bidding today. The three-day IPO, which will close on March 10, is entirely an offer for sale (OFS) by two promoters, Nishant Pitti and Rikant Pittie, who will sell up to Rs 255 crore worth of shares each. While Nishant holds 49.81 per cent stake in the company, Rikant owns 49.68 per cent in the company.
The shares of the online travel company, which operates EaseMyTrip.com, are expected to be listed on BSE and NSE on March 19, 2021. The objective of IPO is to get benefit of listing the shares on the stock exchanges, which will increase its visibility and brand. Besides, it will also provide liquidity for the existing shareholders.
75 per cent of the IPO has been reserved for qualified institutional buyers, while remaining 15 per cent and 10 per cent will be allotted to non-institutional bidders and retail investors, respectively.
The firm has fixed a price band of Rs 186-187 per share. Lot size for the IPO is minimum of 80 equity shares and in multiples of 80 shares thereafter upto 13 lots. This means, investors can buy a minimum one lot of 80 equity shares which would cost Rs 14,960 and for 13 lots it would be Rs 1,94,480.
Ahead of the IPO, Easy Trip Planners had raised Rs 229.5 crore from anchor investors at Rs 187 per share. The anchor investors include HSBC Global Investment Funds, Nomura, Tata Trustee Company, Aditya Birla Sunlife Insurance Company, Sundaram Mutual Fund, Bajaj Allianz Life Insurance Company and Nippon Life India Trustee Company.
The grey market premium on Easy Trip Planners share is stable at Rs 160-165, according to Abhay Doshi, the founder of UnlistedArena.com, reported Mint.
Established in 2008, Easy Trip Planners is the second largest online travel agency in India in terms of gross revenue. It offers a range of online traveling services through its website and Ease My Trip android and iOS mobile app. The company follows B2B2C (business to business to customer), B2C (business to customer), and B2E (business to enterprise) distribution channels to offers its services.
JM Financial Consultants Private Limited and Axis Capital Limited are the lead managers to the IPO. KFintech Private Limited is the registrar of the IPO.