EaseMyTrip.com, India’s second-largest online travel agency has opened an IPO with effect from 8th March 2021 and will close on March 10, 2021. Through this Initial public offering, the Delhi-based online travel company will raise Rs 510 crore from the issue. The price band of the issue has been fixed at Rs 186-187 with a minimum lot size of 80 shares that have been kept under the IPO. This means that to invest in this IPO, you have to invest at least Rs 14,960. This IPO is perfect for people who want to invest money for a short period of time.
The travel company has been consistently profitable from the beginning and 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 the largest network of travel agents in the country when compared to other travel agencies like Bookmytrip, Goibibo. This report states that if we look at the net profit margin, then it was the only online travel agency in India that was profitable during the financial year 2018-20. Axis Capital and JM Financial are working as the book running lead managers for this IPO issue.
EaseMyTrip’s financial capital and revenue are strong and steady and the company’s CAGR growth has been strong as the focus of the management is on tourism growth in the country. Due to Covid, the tourism industry was badly hit however the company’s Q3FY21 booking volume indicates that recovery has been taking place steadily since Covid 19. With the lockdown norms being reduced, the airline, hotel, and other tourism sector industries will gain momentum in the coming days, which will benefit the company.
EaseMyTrip provides an end-to-end travel solution of travel, product, and service which includes booking tickets for airlines, train tickets, bus tickets, taxi services, ancillary value-added services such as travel insurance, visa processing, and other activities. The competition for Easemytrip is with Paytm and OYO. The company’s business model is better and there isn’t any debt on the company. From FY18 to FY20, the total income of the company increased by 26.2 percent year-on-year to Rs 181 crore while net profit has increased by 51.8 percent to Rs 33 crore.