Easy Trip Planners IPO subscribed 3.19 times on Day 2; retail portion subscribed 17.97 times

The initial public offering (IPO) of Easy Trip Planners was subscribed 3.19 times on Day 2. The offer has received bids for 5.03 crore equity shares against the IPO size of over 1.5 crore shares.

Retail investors bid the most, with their portion subscribed 17.97 times.

Meanwhile, the portion set aside for non-institutional investors (NII) was subscribed 24 percent and that of qualified institutional buyers saw 1 percent. However, the employees have not started putting in bids for the issue.

The offer size has been reduced by 1.22 crore equity shares to 1.5 crore shares after it raised Rs 229.5 crore from 35 anchor investors on March 5. The issue, which closes on March 10, has a price band of Rs 186-187 per share and is entirely an offer for sale (OFS).

Promoters Nishant Pitti and Rikant Pittie will sell shares worth up to Rs 255 crore each via offer for sale. Nishant and Rikant hold 49.81 percent and 49.68 percent stake, respectively, in the company.

Founded in 2008, Easy Trip Planners is an online travel agency with offices across various Indian cities, including Noida, Bengaluru, Mumbai and Hyderabad. It offers a comprehensive range of travel-related products and services for end-to-end travel solutions.

Given the company’s strong operating and financial performance in a highly competitive and growing industry including strong margins, robust balance sheet and management, brokerage house Anand Rathi has a 'subscribe' rating on the issue.

It is ranked second among the key online travel agencies in India in terms of booking volume in the nine months ended December 2020 and third among gross booking revenues in FY20.

The company had the highest CAGR during FY18-FY20 in terms of gross booking revenue and operating revenues among the key online travel agencies in India, with a market share of 4.6 percent in FY20.