Online Travel portal EaseMyTrip is looking to raise upto ₹510 crores through capital markets listing.
The only profitable online travel agency amongst key peers as per latest CRISIL report | Other key players in online travel space are MakeMyTrip, ClearTrip, Yatra Online
Easy Trip Planners Limited established in 2008, owns and operates online travel booking portal www.easemytrip.com. EaseMyTrip is focusing on the B2B2C (business to business to customer) distribution channel and providing travel agents access to its website to book domestic travel airline tickets in order to cater to the offline travel market in India. Subsequently, by leveraging its B2B2C channel, the company commenced operations in the B2C (business to customer) distribution channel in 2011by primarily focusing on the growing Indian middle class population’s travel requirements.
Company is ranked second among the Key Online Travel Agencies in India in terms of booking volume in the nine months ended December 31, 2020 and third among Key Online Travel Agencies in India in terms of gross booking revenues in Fiscal 2020 (Source: CRISIL Report. Refer to “Industry Overview – Competitive Assessment of OTA in India – Key Observations” on page 126). According to the CRISIL Report, it is the only profitable online travel agency among Key Online Travel Agencies in India in Fiscals 2018, 2019 and 2020.
Company has a subsidiary, EaseMyTrip UK Limited, and acquired Singapore Arrivals Pte. Ltd. and Easemytrip Middleeast DMCC.
As of March 31, 2020, Easy Trip Planners Limited had a network of 55,981 agents, which includes traditional travel agents who use OTA web platforms (websites) for booking transactions, across India, which was the largest amongst Key Online Travel Agencies in India. Competitors, such as, MakeMyTrip Limited and Yatra Online, Inc., had an agent network of approximately 3,200 agents as of March 31, 2018, and approximately 26,000 agents as of March 31, 2020. Corresponding details for Cleartrip Private Limited were not available.
Easy Trip Planners Limited was the only profitable player among Key Online Travel Agencies in India in Fiscals 2018, 2019 and 2020, with a net profit margin of 0%, 24% and 23%, respectively. In Fiscals 2017, 2018, and 2019, net profit margin for (i) Cleartrip Private Limited was (20.9)%, (16.5)%, and (8.2)% respectively. In Fiscals 2018, 2019 and 2020, the net profit margin for (ii) MakeMyTrip Limited was (32.5)%, (35)%, and (87)%, respectively; and (iii) Yatra Online, Inc. was (33)%, (14)%, and (11)%, respectively.
Promoted by Mr. Nishant Pitti, Mr. Rikant Pittie and Mr. Prashant Pitti, Easy My Trip is into Online Travel booking business
Company would raise ₹510 crores through this IPO. The objects of the Offer are i) To achieve the benefits of listing the Equity Shares on the Stock Exchanges, and ii) To fund expenditures towards general corporate purposes
About Industry
The share of online penetration of the Indian travel industry is expected to increase to approximately 67% to 68% in Fiscal 2023, supported by growth in online transactions due to the COVID-19 pandemic. In addition, factors, such as user friendly interface and higher discounts, are expected to contribute in growth of online travel agencies with the share of online travel agencies in the total online ticketing industry, in terms of value, expected to reach approximately 58% to 60% by Fiscal 2023, based on gross booking revenues (Source: CRISIL Report).
Domestic travel is expected to return to Fiscal 2011 levels. Domestic air passenger traffic is expected to fall from a 0.6% growth in Fiscal 2020 to a 60% to 65% on-year drop to 50 million to 55 million in Fiscal 2021, which is similar to the levels in Fiscal 2011. Domestic passenger traffic growth is expected to decline this Fiscal and then pick up again in Fiscal 2022. The passenger traffic growth in Fiscal 2021 has been significantly impacted by the COVID-19 outbreak as: Two months of the seasonally strong first quarter were already lost; Passenger numbers upon resumption as of October or November were only at 45% to 50% of the numbers in the previous years;
Key Pointers
One of the leading online travel agencies in India with a customer focused approach, including the option of no-convenience fee
Consistent track record of financial and operational performance with lean and cost efficient operations
In-house advanced technology and analytics capabilities
Wide distribution network supported by a hybrid platform
Well-recognized brand with a targeted marketing strategy
Experienced management team with an established track record
Capitalize on travel industry growth opportunities
Focus on expanding hotel and holiday packages, and railway ticketing operations
Leverage existing travel agent network in Tier II and Tier III cities and focus on corporate business to grow our business
EaseMyTrip IPO Snapshot
Issue Open
8-Mar-2021
Issue Close
10-Mar-2021
Face Value
₹ 2/-
Price Band
₹ 186 to ₹ 187 (Including premium of ₹ 184 to ₹ 185 per share)
Discount
Nil
Bid Lot
80 shares and in multiples
Listing on
BSE and NSE
Mode of Payment
UPI / ASBA (Mandatory); Applications using third party UPI/ASBA Bank accounts are liable to rejected
EaseMyTrip Issue & Subscribed Details
Particulars
Issued
Subscribed
Issue Size
₹ 510 Crores (Upper Band)
₹ - Crores
QIB Portion
~75%
77.95 times
NII Portion (Application for lot size of 15 & above)
~15%
384.26 times
Retail Portion (Applications for lot size between 1 & upto 15)
~10%
70.01 times
Employees Portion
NA crores
NA times
Total
100%
160.05 times
EaseMyTrip IPO Indicative Dates
Issue Open
8-Mar-2021
Issue Close
10-Mar-2021
Anchor Investor Bidding
One working day prior to Issue opening date of 8-Mar-2021 (around 5-Mar-2021)
Announcement of Allotment
16-Mar-2021
Initiation of Refunds
17-Mar-2021
Credit of Shares
18-Mar-2021
Listing (Commencement of trading on Stock Exchanges)
Please check below or visit here to check allotment status of IPO
Source: DRHP, RHP, Company, Company Website | Logo/Images published in the article may be copyright of respective companies.
Frequently Asked Questions (FAQ)
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Source: NPCI
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To educate people to apply for IPO's National Payment Corporation of India (NPCI) has come out with the useful video. This video educates consumers on how the IPO process works and how subscribing for IPOs via BHIM UPI helps reduce the time and effort one needs to take for the same.
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