The IPO of Easy Trip Planners, the company that operates online travel portal easemytrip.com, was subscribed over 2.3 times on Monday, the first day of the issue. On Friday, the company allotted Rs 229 crore worth of shares–45 per cent of the total issue size of Rs 510-crore to anchor investors. HSBC, Nomura, Aditya Birla Sunlife Insurance, Sundaram MF and Bajaj Allianz Life Insurance were some of the investors allotted shares. Easy Trip has set a price band of Rs 186-187 per share. The IPO is entirely an offer for sale by promoters Nishant Pitti and Rikant Pittie, who will offload shares worth Rs 255 crore each. Retail investors portion for the IPO is only 10 per cent as against typical 35 per cent for other IPOs.
Online travel company Easy Trip Planners’ initial public offer (IPO) opens for subscription on March 8. The company has fixed the price band at Rs 186-187 per share and aims to raise Rs 510 crore. The grey market is gung ho over the IPO, thanks to the bulls taking charge of the secondary market.
Grey market premium (GMP) of the New Delhi-based company has surged to Rs 166-170 in the unofficial market, translating into as much as 90 per cent premium over the IPO price. The company operates the travel and tourism website EaseMyTrip.com.
The Covid pandemic has wreaked havoc on the travel and tourism industry, which is still ailing for relief. Despite the unlock theme rolling out, the industry has still not reached to pre-Covid levels.
Investors who have an appetite for high risk may consider exposure to the company in the secondary market if it sustains the growth in its performance.