Le Travenues Technology Limited is a technology company focused on empowering Indian travellers to plan, book and manage their trips across rail, air, buses and hotels. The OTA platforms allow travellers to book train tickets, flight tickets, bus tickets and hotels, while providing travel utility tools and services developed using in-house proprietary algorithms and crowd-sourced information, including train PNR status and confirmation predictions, train seat availability alerts, train running status updates and delay predictions, alternate route or mode planning, flight status updates, automated web check-in, bus running status, pricing and availability alerts, deal discovery, destination content, personalized recommendations, instant fare alerts for flights, AI-based travel itinerary planner and automated customer support services. They were the second largest OTA in India in terms of consolidated revenue from operations in Fiscal 2023. They are the largest Indian train ticket distributor in the OTA rail market and they had the largest market share of around 51%, in terms of rail bookings, among OTAs, as of March 31, 2023. The market share in India in the OTA rail market was 46.15% in Fiscal 2023 and increased from 46.4% in the first half of Fiscal 2023 to 52.4% in the first half of Fiscal 2024. The bus-focused app, AbhiBus, was the second largest bus-ticketing OTA in India, with a 11.5% market share in online bus ticket bookings in Fiscal 2023 which increased further to 12.5% in the first half of Fiscal 2024. They had a market share in India of nearly 5.2% of the total airline OTA market by volume in the first half of Fiscal 2024 up from 3.3% in Fiscal 2023. They have the highest app usage among OTAs with 83 million Monthly Active Users cumulatively across the apps, as per "data.ai" in September 2023. They were also the fastest growing OTA in terms of app downloads, with 4.9 million monthly app downloads as per data.ai in September 2023, which was more monthly app downloads than all other OTAs in that month. As of March 31, 2023, they had 429.38 million Annual Active Users and 49.07 million transactions were booked through the OTA platforms in Fiscal 2023. As of December 31, 2023, they had 213.21 million Registered Users, i.e., users who have provided their unique mobile number or email address, as applicable, on the platforms as of the relevant date, and 42.00 million transactions were booked through the OTA platforms in the nine months ended December 31, 2023. In 2022, ixigo trains app was the 8th most downloaded travel and navigation app globally as per data.ai (formerly App Annie). As per data.ai (formerly App Annie), in 2022, the ixigo trains app and ConfirmTkt app were also featured in the top 10 travel apps in India with the ixigo trains app ranked 2nd and ConfirmTkt ranked 7th, in terms of most downloaded travel apps. Assured, seat selection, in-flight meals, visa processing, travel insurance and car rental services to the user base in addition to providing free information and utility services. The Ancillary Attachment Rate for the Value-Added Services (defined as Value-Added Services sold as a percentage of all bookings sold) was 31.65% and 27.96% and in the nine months ended December 31, 2023 and December 31, 2022, respectively, and was 28.87% in Fiscal 2023, 26.41% in Fiscal 2022, increasing from 15.43% in Fiscal 2021. The ability to monetize the user-base is also demonstrated by the Monthly Transacting Users to Monthly Active Users ratio which increased from 1.81% in March 2021 to 4.32% in March 2022 and was 3.40% in March 2023, while it was 3.22% and 3.39% in December 2023 and December 2022. They are also able to cross-sell flight bookings to the next billion users-focused app users, or users of ixigo trains app, ConfirmTkt and AbhiBus. This accounted for 31.26%, 31.53%, 33.04%, 16.52% and 16.85%, respectively, of the overall flight passenger segments in the nine months ended December 31, 2023 and December 31, 2022, and in Fiscals 2023, 2022 and 2021. As per financial performance, Le Travenues Technology Limited has posted total income / net profits of Rs 138.41 Cr / Rs 7.53 Cr (FY21), Rs 384.94 Cr / Rs (21.09) Cr (FY22), Rs 517.57 Cr / 23.40 Cr (FY23) and Rs 497.09 Cr / Rs 65.71 Cr (Q3 FY24). So as per previous financials data, company has shown good growth. Company has an average EPS of Rs 0.11 and average RoNW of 4.51% for last three fiscals. Issue is priced at a P/BV of 8.14 as per NAV of 11.43 as on 31.12.23. If we attribute latest earnings of FY22, FY23, TTM and annualised FY24 on fully diluted equity post issue, then asking price is at a P/E of around (170.81), 154.00, 51.15 and 41.12 respectively, which looks fully priced. As per RHP, comparision between listed peers is shown in above table. On BRLM's front, three lead managers are associated with this IPO, and have handled around 82 IPOs in last three fiscals. Axis Capital Limited: This is 34th Main Board IPO from this BRLM. From last 10 Main Board IPOs, three opened below issue price and remaining opened above or at par issue price on the day of listing. As of now, from last 10 Main Board IPOs, two are trading below issue price and remaining are trading above issue price. ( As on 05.06.2024) DAM Capital Advisors Limited: This is 14th Main Board IPO from this BRLM. From last 10 Main Board IPOs, five opened below issue price and remaining opened above or at par issue price on the day of listing. As of now, from last 10 Main Board IPOs, eight are trading below issue price and remaining are trading above issue price. ( As on 05.06.2024) JM Financial Limited: This is 37th Main Board IPO from this BRLM. From last 10 Main Board IPOs, three opened below issue price and remaining opened above or at par issue price on the day of listing. As of now, from last 10 Main Board IPOs, four are trading below issue price and remaining are trading above issue price. ( As on 05.06.2024) As per financials, Le Travenues Technology Limited has shown good growth, RoNW is 5.74% and P/E is respectively (170.81), 154.00, 51.15 and 41.12 as per FY22, FY23, TTM and annualised FY24 earnings. So, issue looks fully priced. Company is in business of technology based travel platform. The growth of the sector will be good. Performance of BRLM is good. So, we give SUBSCRIBE rating for this IPO for long term. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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