Easy Trip Planners: The online travel agency Easy Trip Planners has started with a premium in the stock market. The company’s stock is listed at Rs 212 with a premium of around 13 per cent on BSE. While its issue price was Rs 187 per share. At the same time, after listing, the stock rose to Rs 233. At 10:30 am, the stock was trading at Rs 219 with a 17 per cent premium. The company launched the IPO on March 8, which received a great response from the investors. This IPO was subscribed 159 times. Given the premium in the gray market, a strong listing of Easy Trip Planners was expected in the market.
Let us know that the IPO of Delhi’s online travel agency opened for subscription on 8 March and closed on 10 March. The company has raised Rs 510 crore from this issue. The price band of this IPO was Rs 186–187 per share. This issue of the company was completely Offer for Sale (OFS). Prior to this offer, its promoters had a 100 percent stake in the company. Promoters Nishant Pitti and Ricant Pitti have sold shares worth Rs 255-255 crore. After this issue, their stake in the company has come down to 75 percent.
Investors got a great response
The IPO of Easy Trip Planners was subscribed 159.33 times. The size of the issue was 1.50 crore equity shares, while bids were received for 240.27 crore shares. Reserve Porson received 77.53 times bids for qualified institutional buyers (QIBs). For non-institutional investors, Reserve Porson has received bids of 382.21 times and for retail investors, Reserve Porson has received bids of 70.40 times.
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About the company
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. 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.
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. Easy Trip is India’s second and third online travel agency (OTA) by gross booking revenue in fiscal year 2020 in terms of booking volume in the 9 months ended December 2020. The company has a market share of 4.6 percent in India.
What to hold for long term
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. 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.
Brokerage house Hem Securities says investors can hold shares for short and long term. The companies fundamental is 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 the vaccination drive, the airline industry will gain momentum in the coming days, which will benefit Easy Trip Planners.
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