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Easy Trip Planners listing marred by bears; shares begin trading at just 10% premium over IPO price

IPO of Easy Trip Planners saw massive interest from all pockets of investors, with the subscription tally soaring to 159 times earlier this month.
(Image: REUTERS)

Easy Trip Planners shares made a lukewarm listing on the stock exchanges, gaining only 10% over the IPO price as benchmark indices tumbled. The debutant stock began trading at Rs 206 per share, up Rs 19 from the upper band of the IPO price of Rs 187 per share. Domestic benchmark indices were trading with losses on Friday morning, extending their downfall as bond yields continue to climb higher. Sensex and Nifty are down more than 6% from their all-time highs that were achieved earlier in February.

Check Live Price: Easy Trip Planners

On listing, Easy Trip Planners shares were quoting a market capitalisation of Rs 2,238 crore. The IPO of Easy Trip Planners saw massive interest from all pockets of investors, with the subscription tally soaring to 159 times earlier this month. Non-Institutional Investors had subscribed the issue 382 times while Qualified Institutional Buyers (QIB) subscribed 77.53 times their quota and retail investors bid for 70.4 times the portion reserved for them. 

The second-largest online travel agency, Easy Trip Planners, took to the market to raise Rs 510 crore via an Offer for Sale (OFS) by existing shareholders. The company garnered strong interest from investors owing to its strong financial position. Easy Trip Planners made a profit consistently for the last three years. Profits have surged from Rs 7 crore in the fiscal year 2018 to Rs 35 crore in the previous financial year. The performance was marred by the pandemic, with the company reporting a 56.3% and 61.6% on-year drop in the gross booking volume and revenues. However, in the first nine months of the current fiscal year, Easy Trump has managed to report a net profit of Rs 31 crore. 

A loyal customer base has helped Easy Trip Planners over the years. Brokerage firm Geojit Financial Services highlighted that the company had a repeat transaction rate of ~85.7% in the previous fiscal year. Analysts at Motilal Oswal said that they like the company for its lean business model, differentiated offering and a strong customer connect. “Being the first in the segment to get listed in India, ETPL could generate high investor interest,” they added.

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