EaseMyTrip IPO Review: Issue opens on Monday! 'SUBSCRIBE' say experts; check details like important dates, price band, lot size, many more
EaseMyTrip IPO Review: Online travel agency Easy Trip Planners Ltd. (Easy Trip or EaseMyTrip), is planning to raise up to Rs 510 crore through an IPO (Initial Public Offer), which opens on 8th March 2021 and closes on 10th March 2021.
EaseMyTrip IPO Review: Online travel agency Easy Trip Planners Ltd. (Easy Trip or EaseMyTrip), is planning to raise up to Rs 510 crore through an IPO (Initial Public Offer), which opens on 8th March 2021 and closes on 10th March 2021. The EaseMYTrip IPO price band is Rs 186 to Rs 187 per share. The public issue is fully an OFS (offer For Sale). The company will not receive any fund from the OFS. The objective of the issue is to get benefit of listing the EaseMyTrip shares on both BSE and NSE, which will further enhance its visibility & brand and also provide liquidity for the existing EaseMyTrip shareholders. According to stock market experts, one can subscribe EaseMyTrip IPO for around 10-15 per cent premium on the listing date. One lot of the EaseMyTrip IPO will consist of 80 EaseMyTrip shares means one will have to bid for at least 80 EaseMyTrip shares.
Speaking on the EaseMyTrip IPO premium; Avinash Gorakshkar, Head of Research at Profitmart securities said, "EaseMyTrip IPO can be a good buy for IPO enthusiasts as the upcoming IPO is from the digital marketing domain that has huge potential in the long-term time horizon. But, due to he COVID-19 pandemic, the tourism industry is under heat and the company caters to the tourism industry, it may not be able to give whopping returns but one can expect 10-15 per cent listing gains from the EaseMyTrip IPO IPO."
Highlighting about the peer comparison and valuations of EaseMyTrip IPO; Sumeet Bagadia, Executive Director at Choice Broking said, "There are no listed peers in domestic market, having similar operating model. At higher price band of Rs 187, EaseMyTrip IPO is demanding a P/E multiple of 58.6x (to its restated FY20 EPS of Rs. 3.2)." Bagadia said that EaseMyTrip business model is expected to fetch extra business in the coming times as the industry it belongs has grown exponentially.
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"Based on gross booking revenues, the Indian Online Travel Agencies (OTA) market has increased by 20-22 per cent CAGR (Cumulative Average Growth Rate) over FY15-20 to around Rs 900bn to 910bn in FY20. This rapid growth is mainly driven by a rapid growth in affordable access to internet penetration, growing awareness & comfort with online transactions, competitive prices offered by OTA players and growing network of service providers on OTA platforms. These factors will continue to drive growth in the medium term, with gross booking revenue further growing by 1-2% CAGR over FY20-23 to reach at Rs 950bn to 960bn in FY23," said Sumeet Bagadia.
EaseMyrip IPO dates to remember
EaseMyrip IPO will become open for subscription on 8th March 2021 and close on 10th March 2021. EaseMyrip IPO allotment will take place on 16th March, refund to those who failed to make a cut into the list of lucky bidders will begin on 17th March 2021 while credit of EaseMyTrip shares into the Demat Account of the lucky bidders will take place on 18th March 2021.
EaseMyTrip IPO listing date is 19th March 2021.
According to Crisil, the key players in the OTA market are Clear Trip Pvt. Ltd., MakeMyTrip Ltd., Yatra Online, Inc. and Easy Trip (collectively referred as the key OTAs). Based on the gross booking revenue, the company has consistently grown its market share in the OTA market from 3.1 per cent in FY18 to 4.6 per cent in FY20.
Axis Capital Limited and JM Financial Limited are the Book Running Lead Managers to the EaseMyTrip IPO while the upcoming IPO will be listed at both NSE and BSE.
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