The company, whose public offer worth Rs 720 crore was subscribed 53.95 times by retail investors, received a thumping approval from non-institutional investors (110.25 times) and qualified institutional investors (106.73 times) as well. Out of the Rs 720 crore issue, Rs 120 crore were to be generated from fresh issue (
Per the company’s draft red herring prospectus, the company is set to utilise around Rs 450 crore from its net proceeds towards funding its working capital requirements, and another Rs 258 crores to enhance its cloud infrastructure and technology. The remaining funds will be deployed for strategic acquisitions and general purposes.
The company, which is home to three applications, namely
Between 2020 and 2023, the Indian OTA industry grew at a CAGR of 18%, going from gross booking revenues worth Rs 74,900 crores in 2020 to Rs 1,23,900 crore in FY2023.
The company also earned Rs 501.25 crores in net revenue during FY23. It also saw a sharp reversal in its profit after tax (PAT) margins between FY22, where it was -6.42% to 4.63% in FY23. The company’s PAT grew at a CAGR of 76.2% between FY 2021-23.
Brokerage firms like Canara bank securities and BP Wealth foresee long-term growth potential in the stock, given its dominant position in the OTA segment. The company is positioned as the leading OTA for India’s next one billion consumers.
As compared to its peers in the industry, namely
The company also has its fair share of pitfalls to overcome. Its ticketing agreement with