Online travel agency Easy Trip Planners has decided to open the maiden public offer for subscription in the coming week, on March 8. This would be the 10th public issue in 2021, after Indian Railway Finance Corporation, Indigo Paints, Home First Finance Company, Stove Kraft, Brookfield India REIT, Nureca, RailTel Corporation of India, Heranba Industries and MTAR Technologies.
The company aims to raise Rs 510 crore through its public issue which is a complete offer for sale. Promoters Nishant Pitti and Rikant Pittie will sell up to Rs 255 crore worth of shares each via offer for sale. Promoters held 49.81 percent and 49.68 percent stake, respectively in the company.
The company will announce its price band and the minimum bid lot on March 3. The issue will close on March 10, 2021 and the anchor book, if any, will open for a day on March 5.
Easy Trip Planners offers a comprehensive range of travel-related products and services for end-to-end travel solutions, including airline tickets, hotels and holiday packages, rail tickets, bus tickets and taxis as well as ancillary value added services such as travel insurance, visa processing and tickets for activities and attractions.
It was ranked second among the key online travel agencies in India in terms of booking volume in the nine months ended December 2020 and third among the key online travel agencies in India in terms of gross booking revenues in FY20.
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The company has been consistently profitable since incorporation, and according to the CRISIL report, it was the only profitable online travel agency among the key online travel agencies in India during FY18-FY20, in terms of net profit margin.
Its market share in the total Indian online travel agency industry in terms of gross booking revenues and gross booking revenues for airline ticketing segment was approximately 4.6 percent, and 5.5 percent-6.5 percent, respectively, in FY20.
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Easy Trip’s registered customers in the B2C channel increased at a CAGR of 28.24 percent from 5.87 million customers as of March 2018 to 9.66 million customers as of March 2020, and further increased to 10.32 million customers as of December 2020. Further, its gross booking volumes increased from 2.37 million in FY18 to 5.43 million in FY20, and were 1.77 million in the nine months ended December 2020.
Axis Capital and JM Financial are the book running lead managers to the issue.