Ease my trip was welcomed at ease in the market as its share price took a hike of 13.5%. The IPO was registered at Rs. 186-187 but it got up to Rs. 212.25. To look into more details; check out the article.
EASE MY TRIP BACKGROUND
The company is an Indian online travel company founded in 2008 by Nishant Pitti, Rikant Pitti and Prashant Pitti. The headquarters are at Delhi. It provides services like booking flights, hotels, holidays, buses, trains and cars. It currently has 5 national and 3 international offices.
It has more than 52000 travel agents in 11 years catering to 9.27 million users.
It has bagged various recognitions like Best Travel Booking Site in 2020 and has been among the top players in the market since its inception. It has technically been able to earn the place of being the only profitable company among the entire market of online travel aggregators in the nation.
MARKET STATUS OF EASE MY TRIP
The company came up with a Rs. 510 crore IPO in 2019 that was quite important as it made the company the first ever in the segment to be listed on the share market of the country. Axis Bank and JM Financial were the managers of that part.
In 2020; the company again filed for IPO that took off on Friday this year . The prominent investors here are mentioned below :
- HSBC Global Funds
- Tata Trustee Company
- Aditya Birla Sunlife Insurance
- Sundaram Mutual fund
- Nippon Life India
- Bajaj Allianz Life Insurance Company
The IPO was over-subscribed by 159.33 times. As soon as it got listed; the market value of company rose to Rs. 2,305 crore. If we take a look at the grey market; there also the market was trading at far better prices which is at Rs. 160-65.
Now let’s a look that how much did it subscribed separately for different segments. The segmented subscription details are as follows:
Qualified Institutional Buyers: 78 times
High Net worth Individuals: 384.26 times
Retail: 70.78 times
IS IT THE RIGHT TIME OR NOT??
The company comes up with its IPO when the country is facing a major struggle regarding the pandemic. The travel market is the most affected segment and this decision will definitely be a major issue in the offering. The advisory has been issued by many states as they resort to lockdowns & night curfews. This indicates a tough time but one to stay back and compromise with business.
The answer that is received is quite optimistic on the company’s and signifies that they are confident enough about the industry. The director recently quoted that the 70 per cent of losses have already been recovered during the last phase of 2020 giving a sign that things will be good enough in the coming days.
There a lot of travel companies but Ease my trip actually went to test its grounds on market; which itself is commendable. The situation ahead are tough but it’s not that travel would be stopped. People are now travelling to places in their own country making it even more profitable. And profitability is the consistency that the company wants.