EasyMyTrip IPO - Issue Date, Price, Analysis, Reviews and Details Swastika
Easy-Trip-Planner-Limited-IPO-Blog

Easy Trip Planners Limited IPO

Easy Trip Planners is the company behind the online travel booking portal EaseMyTrip.com. The company offers a comprehensive range of travel-related products and services for end-to-end travel solutions, including airline tickets, hotels and holiday packages, rail tickets, bus tickets and taxis as well as ancillary value-added services such as travel insurance, visa processing and tickets for activities and attractions.

As of 30 November 2019, it provided customers with access to more than 400 international and domestic airlines, more than 1,096,400 hotels in India and in international jurisdictions, almost all the railway stations in India as well as bus tickets to and taxi rentals for major cities in India.

The company is among the leading online travel agencies in India in terms of gross booking revenues and had a market share of approximately 3.8%, and 4.5% to 5% in terms of gross booking revenues and gross booking revenues for the airline ticketing segment in India during FY2019.

The company focuses on the B2B2C (business to business to customer), B2C (business to customer), and B2E (business to enterprise) distribution channels.

Product Portfolio:

  The company’s products and services are organized primarily in the following segments:

  1. Airline tickets, which consists of the sale of airline tickets as well as airline tickets sold as part of the holiday packages; 
  2. Hotels and holiday packages, which consists of standalone sales of hotel rooms as well as travel packages (which may include hotel rooms, cruises, travel insurance and visa processing); and
  3.  Other services, which consists of rail tickets, bus tickets, taxi rentals and ancillary value-added services such as travel insurance, visa processing and tickets for activities and attractions.

Strength of the company

  • One of the leading online travel agencies in India.
  • Strong brand name and distribution network.
  • In-house advanced technology infrastructure.
  • Consistent financial track record and operational performance.

RISKS RELATING TO  BUSINESS

  •  Any impact on airline bookings can adversely impact the revenue of the company.
  • Any reduction in the commission of GDS and API service providers can affect the company’s business and growth.
  • Any disruption to the supply of air, train, and bus tickets could adversely affect operations, turnover, and profitability.
  • Any failure to maintain the quality of customer service and dealing with complaints could adversely affect its business and operating results.

IPO Details:

IPO Date March 8th, 2021 to March 10th, 2021
Issue Type Book Built Issue IPO
Issue Size Eq Shares of ₹2
(aggregating up to ₹510.00 Cr)
Fresh Issue NIL
Offer for Sale Eq Shares of ₹2
(aggregating up to ₹510.00 Cr)
Face Value Rs.2 per equity share
IPO Price Rs.186 to Rs.187per equity share
Min Order Quantity 80
Listing At BSE, NSE

IPO Objective:

  • To achieve the benefits of listing the equity shares on the stock exchange 
  • To execute the sale of up to 2,72,72,727equity shares by the promoter selling shareholders aggregating up to Rs.510 Cr

Financial Performance:

Easy Trip Planners’ financial performance (in INR crore)
  FY2018 FY2019 FY2020 9M FY2021
Revenue 113.6 151.1 179.7 81.6
Expenses 103 109.9 132.2 39.7
Net income 0 24 34.6 31.1
Net margin (%) 0 15.9 19.3 38.1

Tentative Time Table:

Price Band announced on 3 March 2021

Ease My Trip IPO Anchor List on 7 March 2021

Ease My Trip IPO Opens on 8 March 2021

Ease My Trip IPO Closes on 10 March 2021

Ease My Trip IPO Allotment on 16 March 2021

Unblocking of ASBA 17 March 2021

Credit to Demat Accounts 18 March 2021

Ease My Trip IPOListing on 19 March 2021

Outlook :

Easy Trip Planners is the second largest online travel agency in India in terms of volume and 3rd largest in terms of revenues. Easy Trip Planners has the lowest sales and marketing expense as a percentage of its gross booking revenues in 2020 as per a report by CRISIL.

The Indian travel industry is expected to grow at a CAGR of 2% from Fiscal 2020 to Fiscal 2023. As people have slowly started resuming air travel after the COVID-19, the air ticketing segment is expected to grow at a CAGR of 1.5% by Fiscal 2023.

Increasing penetration of the internet and smartphones is expected to continue aiding the growth in this segment, the impact of the pandemic might take some time to wear off.

Easy Trip Planners have stable revenue growth over the last 3 years and it is generating consistent and improved margins. Over FY17-20, Company saw a 31.7% CAGR rise in the gross booking revenue which is led by a 52.4% CAGR growth in the gross booking volume. PAT from operations increased by 23.6% CAGR over FY17-20. 

At an EPS of 3.19 and at an upper price band of 187, the PE ratio would be 58.62, however as per the RHP company does not have any peers thus it is ascertained whether the issue price is underpriced or overpriced. The company’s net profit margin in FY2020 is 19.3%.

The company is further claiming to be using sophisticated technology which will help in improving the margins growing further. Thus, the fundamentals of the company would also be improving.

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