New Delhi: In an exclusive interview with Money9, the IPO bound online travel portal, Ixigo’s Group CEO Alok Bajpai has said that their company stands to benefit from the growth prospects of rise in hospitality business in India. Bajpai said Ixigo caters to provide ticket booking services of trains, flights and buses and also hotel bookings to customers. There is huge scope for growth in all these four segments. The Ixigo Group CEO also threw light on contribution of these four segments in the company’s revenue.
Ixigo IPO GMP today
Ixigo IPO GMP stands at Rs 24, as per reports. This signifies IPO listing gains of around 24 per cent. By the second day of the offer, the IPO quota was subscribed more than double its size. The company had earlier raised Rs 333 crore from anchor investors. The public issue opened for subscriptions from June 10, 2024 and will remain opened till June 12.
Ixigo IPO Subscription Status
The Rs 740 crore stake sale process was subscribed more than double its size on day two of the offer. So far, the issue has got above average response from retail investors. Their quota was oversubscribed seven times.
Ixigo IPO Expected Allotment Date
The IPO shares’ expected allotment date is June 13, 2024. The shares are expected to be listed on June 18, 2024.
Ixigo revenue bookings
Bajpai informed that Ixigo currently earns more than half of its revenues from train ticket bookings. While, flight ticket bookings constitute 22 per cent of the revenues, 20 per cent comes from the bus segment. The hotel segment contribution is pretty small as they had rolled out hotel room booking service on their portal not too long ago in December 2023.
We have build train first strategy app: Ixigo Group CEO
Bajpai also said that right from the very beginning, Ixigo has implemented train first strategy on its portal and app. According to him, the management of Le Travenues Technology Ltd which owns the Online Travel Agency (OTA), believe that they will get more customers from train ticket bookings segment rather than flight bookings segment. Bajpai said, “This is the area we are focussed on right from the beginning. And this is going to be our strategy going forward because we believe in future also we will get more customers from smaller cities who mostly prefer traveling by train. We want to gain trust and patronage of customers from Tier-II and Tier-III cities. As the Government of India intends to build more and more airports in smaller towns, we believe our same train customers will also book flight tickets from our app when airports become operation in their town. And this is how we will retain these customers on our portal.” Bajpai further said, “Four per cent of India’s population book flight tickets. Airline’s penetration level is quite low in India.”
90 per cent of out traffic is organic: Bajpai
Bajpai said that 90 per cent traffic on its portal is organic. They haven’t spent money to get customers onboard their portal. He added, “86 per cent of our transactions are repeated.” This means the firm is able to retain 86 per cent of its customers.
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Ixigo Group CEO Alok Bajpai has said that more than 50 per cent of Le Travenues Technology Ltd’ revenue comes from train ticket bookings while, flight ticket bookings constitute only 22 per cent to overall revenue. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
