InvestorQ : Is it true that Easy Trip has raised anchor funds ahead of its forthcoming IPO?
Neelam Naik made post

Is it true that Easy Trip has raised anchor funds ahead of its forthcoming IPO?

Anu Biswas answered.
3 months ago

Just two days ahead of the opening of its IPO on 08 March 2021, the online travel company Easy Trip Planners Ltd raised over Rs.229 crore from anchor investors. The IPO will open on 08 March and will be open for subscription till 10 March. This will be the 27th IPO this fiscal year of which only 3 IPOs till data are trading below their issue price with all the other IPOs quoting above the issue prices.

As part of the pre-IPO anchor placement, Easy Trip allotted a total of 1.227 crore shares to a total of 35 anchor investors at a price of Rs.187 per share. Incidentally, this is also the upper limit of the price band. Easy Trip has mopped up Rs.230 crore via the anchor placement and should act as a good benchmark for the IPO when it opens on 08 March. Marquee anchor investors included HSBC, Nomura, Tata MF, Birla Sun Life MF, Sundaram MF and Bajaj Allianz Insurance.

The company's initial public offering is entirely an offer for sale and there is no fresh issue component to the IPO. Both the promoters, Nishant Pitti and Rikant Pitti will each sell shares worth Rs.255 crore via the OFS mechanism resulting in the total IPO-OFS size at Rs.510 crore. The price band has been fixed at Rs.186-187 and the issue will remain open from 08 March to 10 March, both days inclusive.

From the company’s perspective, they do not need fresh funds with any degree of urgency. The listing of the equity shares is only expected to enhance its visibility and provide liquidity to the current shareholders. Easy Trip was founded in 2008 and is a travel and tourism portal spread across the length and breadth of India. It also claims to be the only profitable online travel agency among the key online players in the market.