InvestorQ : How was the listing of the Easy Trip IPO on Friday 19 March?
NISHA Nayak made post

How was the listing of the Easy Trip IPO on Friday 19 March?

Priyanka N answered.
6 months ago

The IPO of Easy Trip Planners opened on the NSE on 19 March at a price of Rs.212.25, representing a listing premium of 13.5%. The issue price of the IPO was Rs.187. During the day, the stock touched a high of Rs.234 but ended the day at Rs.206.50. While this is still above the issue price, the stock has slipped into a discount to the listing price. This was surprising because on Friday, the stock indices gained sharply from lower levels.

It may be recollected that when the offer for sale of Easy Trip worth Rs.510 crore had closed in the previous week, it had received a strong response from investors with the issue getting subscribed 159 times. The retail portion was subscribed 70 times, the QIB portion was subscribed 78 times while the HNI component or the non-institutional category received 382 times subscription in the IPO.

Easy Trip attracted a lot of interest from investors as it offers a comprehensive range of travel-related products and services. One cay say that it almost offers you end-to-end travel solutions, including airline tickets, hotels and holiday packages. While airline tickets account for 94% of revenues, its various holiday packages account for 5% of the revenues. It also offers value added services like travel insurance, visa processing etc.

The big bet for the company is on the expansion of the online hotel booking business slated to increase from 26% to 31% in the next 2 years. Easy Trip will also focus on direct tie-ups with hotels and hotel suppliers in order to expand its presence in hotels outside India. It also enjoys lean cost of operations and that is likely to boost profits.