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EaseMyTrip IPO And Its Key Details : India’s Second Largest Online Travel Agency

EaseMyTrip is an online travel agency. It makes bookings for air tickets, bus tickets, rail tickets alongside the hotel bookings as well. Hence in all it is a package of traveling options. One can find or book an entire tour online through this application. It is founded by two brothers who had problems while booking their father’s online travel rockets for business purposes. This was started by them in a garage. The company had used all their savings in the initial three years and for staying afloat they had to borrow money from their family members.

The company faced a turn around when one airline company viewed that multiple ids are booking their tickets through this application. They gave the contract of the entire ticket booking of their airlines on this application. This way the company had its first breakthrough and since then it has developed pretty well. It is the second largest domestic travel agency in India today.

The company has served more than 400 airlines internationally and domestically. The company has more than 1100000 hotels registered for booking and a network of more than 50000 agents.

Key Highlights About the IPO

The EaseMyTrip IPO is set to get launched on 8th March, 2021. The Subscription ends on 10th March, 2021. The issue is a book built issue and the Face Value per share is 2 Rs. The IPO price band is set at 186 – 187 Rs per share and the minimum lot size is 80 shares. The EaseMyTrip IPO size is set at 510 Crore Rs. The entire IPO is to be considered as OFFER FOR SALE and there is no provision of shares for fresh issue. The IPO is going to be listed at both BSE and NSE. The listing date is set at 19th March, 2021. The registrar for the IPO is Karvy Fintech Private Limited.

Tabular Data

IPO OPENING DATE	8th March, 2021
IPO CLOSING DATE	10th March, 2021
ISSUE TYPE	Book Built Issue
Face Value per share	2 Rs
IPO price band	186 – 187 Rs per share
LOT SIZE	80 shares
MINIMUM ORDER QUANTITY	80 shares
ISSUE SIZE	510 Crore Rs
FRESH ISSUE	No Fresh Issue
OFFER FOR SALE	510 Crore Rs
LISTING AT	BSE, NSE
LISTING DATE	19th March, 2021

Important Dates

IPO OPENING DATE	8th March, 2021
IPO CLOSING DATE	10th March, 2021
IPO ALLOTMENT DATE	16th March, 2021
REFUNDS	17th March, 2021
DEMAT A/C CREDITED ON	18th March, 2021
IPO LISTING DATE	19th March, 2021

The EaseMyTrip IPO is opening for subscription on 8th March, 2021. The subscription would conclude on 10th March, 2021. The IPO allotment process would conclude on 16th March, 2021 and the refunds will be initiated on 17th March, 2021. The DEMAT A/C of shareholders would get credited on 18th March, 2021 with shares. The IPO is going to get listed on 19th March, 2021.

Promoter Holding

The promoters of the company are Nishant Pitti, Rikant Pitti and Prashant Pitii. The promoter shareholder pre IPO launch is 100%.

The lead managers of the company for IPO would be :

Axis Capital Limited
JM Financial Consultants Private Limited

The minimum issue size per lot is 80 shares. The amount for minimum lot size is 14960 Rs. The maximum lots per holder is 13 which involves 1040 shares. The amount regarding the same is 194480 Rs.

Objectives for IPO

The objectives for the company behind the IPO are :

The company wants to get hold of some additional cash. By this IPO the company wants to take utmost advantage of the share listing procedure.
The company wants to diversify its shareholding and hence it wants to get public promoters and shareholders worth Rs. 510 Crore.
The company may also utilize the funds to meet general corporate purposes.

Company Financials

PARTICULARS (in million Rs.)	2019-20	2018-19	2017-18
ASSETS	2820	2430	1800
REVENUE	1797	1510	1135
NET PROFIT	347	239	0.50

The company is doing much better since previous years. The company’s asset base as well as the company’s revenues are flourishing and improving. The company had only 0.50 million Rs as its net profit in the initial phase but today it bags nearly 347 million Rs as its net Profit. The latest records also display that the company has achieved almost 311 million Rs in net profits as of September 2020 end. This is a great sign for the company given the COVID situation. The company has done pretty well on the frontline business in times of lockdown. The Revenue has taken a hit however in Lockdown. It has come to 815 Million Rs in 2020 Sept. Hence the company has been working hard to achieve the similar position that it had in 2019-20.

If looked with a neutral point of view the travel and tourism business has suffered the most due to COVID situation. This has cracked open many companies and damaged their liquidity. If the company has still managed to stay afloat and do well as per the standards set in 2019-2020 it is great on part of the company. The IPO may also be a reason to boost the liquidity and expand post COVID period. Hence one should also take a close look on companies long term plans in 5 years.

Asset History

One more interesting fact is that the company’s assets are growing constantly. The revenue however shrunk in 2020 Sept but the assets have grown significantly. The assets base at 2020 Sept end is 3570 million Rs. The asset also increased from 2017. The asset base increased with a consistency of 600 million Rs. Hence the company is working constantly to expand itself which is a good news for the investors. The reason is more the expansion plans of the company, more would be the revenue flow in near future. Hence for longer term perspectives this company is totally viable for the investors.

Pros

Great domestic networking and international contacts as well.
More than 1100000 hotels under its brochure for booking. The company is much active in its hotel booking business. This provides diversity to the company.
400 + airlines registered domestically and internationally. Hence the company has good domestic as well as international relations with clients.
Second in rank among the domestic travel agencies in India.
More than 50000 travel agents working under the EaseMyTrip brand name
Great consistency in terms of financial performance

Cons

Suffered revenue loss in COVID situation
Tourism industry not at its peak post COVID situation. This can be a red flag for the company. Also many countries are still not allowing foreign people to come into their domain. Hence it may take a while to recover the losses of 2020 and 2021.