Easy Trip Planners IPO Open: If you have missed investing in the IPO market, then from today on March 8, you are getting a new option. The online travel agency Easy Trip Planners has launched its IPO. The company plans to raise Rs 510 crore through an IPO. For this, the Easy Trip Planner has fixed the price band of Rs 186-187. This IPO will be open for investment from March 8 to March 10. It can be listed on the stock market on 19 March. If you are planning to invest in it, then it is important to know a few things first.
What is the expert saying
Brokerage house Angel Broking has given a positive outlook for the IPO. According to the brokerage, despite the challenges of COVID 19, the revenue of the company between April and December has been Rs 50 crore. However competition has always been a concern in this sector. The competition for Easy Trip Planners is from Paytm and OYO. At the same time, brokerage house SMC has also advised for long-term investment in IPO. According to the brokerage, the company’s business model is better. There is no debt on the company. During FY18 to FY20, the total income of the company increased by 26.2 per cent year-on-year to Rs 181 crore. While net profit has increased 51.8 per cent to Rs 33 crore.
Brokerage house Hem Securities says the company’s fundamentals are strong. The company’s CAGR growth has been strong. The focus of management is on growth. The company’s Q3FY21 booking volume indicates that recovery has been taking place steadily since COVID 19. With the acceleration of vaccination drive, the airline industry will gain momentum in the coming days, which will benefit Easy Trip Planners. Niveyak can invest in the company for short and long term.
Offer for sale
This IPO will be fully offer for sale. In this IPO, promoters Nishant Pitti and Ricant Pitti will sell shares worth up to Rs 255 crore through the offer for sale. Easy Trip provides an end-to-end travel solution of travel, product and service. This includes providing tickets for airlines tickets, train tickets, bus tickets, taxi services, ancillary value added services such as travel insurance, visa processing and other activities.
Lot size
Lot size 80 shares have been kept under the IPO of Easy Trip Planners. That is, at least 80 shares have to be bid. This means that to invest in this IPO, you will have to invest at least Rs 14,960. Axis Capital Limited and JM Financial Consultants Private Limited are the lead managers for the IPO.
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How much reserve for
75% of the IPO is reserved for qualified institutional buyers. At the same time, 15 percent share is reserved for non-institutional investors. While 10 percent share has been reserved for retail investors.
Company network strong
As of March 2020, 55,981 travel agents were registered with the company in almost all major cities of the country. According to a report by CRISIL, Easy Trip Planners has a large network of travel agents in the country. In December, the number of registered travel agents with the company was 59,274. The company’s financials are also fine, although the lockdown has had an impact on the company’s business. Based on the net profit margin, it has been profitable during the financial year 2018-20 period.