Easy Trip Planners IPO Review

Easy Trip Planners IPO of Rs. Rs 510-crore opens on March 8, 2021. It comprises an offer-for-sale of 2.72 crore shares, amounting to 25.1% of its paid-up equity. Easy Trip Planners Limited founders Nishant Pitti and Rikant Pitti, who hold 49.81% and 49.68% stake, respectively, will each sell shares to the tune of ₹255 crore through offer-for-sale mechanism. Post-IPO, promoter holding in the Delhi based online travel company, will come down to 74.90%. Easy Trip Planners offers a comprehensive range of travel-related products and services i.e. Airline Ticket, Hotel, Holiday packages, Rail ticket, etc.

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Easy Trip Planners IPO Details:

Issue opensMonday, 8th March, 2021*
Issue closesWednesday, 10th March, 2021
Face Value₹ 2 Per Share
Issue DetailsOFS aggregating upto ₹ 510 Cr
Issue Size (₹ Cr)₹ 510 Cr
Price Band₹ 186 – 187
Bid Lot80 Shares 
Issue Structure : 
QIB75% of the offer
NIB15% of the offer
Retail10% of offer (2,727,272 Shares, ₹ 51.00 Cr)
BRLMsAxis Capital, JM Financial
RegistrarKFin Technologies Pvt. Ltd.

Updates & Indicative Time Table:

  • ANCHOR ISSUE: IPO bound Easy Trip Planners raised about Rs 229 crore from 35 anchor investors. The Anchor investors include HSBC Global Investment Funds, Nomura Funds Ireland, Tata Trustee Company, Aditya Birla Sunlife Insurance Company, Sundaram Mutual Fund, Bajaj Allianz Life Insurance Company, Nippon Life India Trustee Company.
  • Indicative Timetable
    • Finalization of Basis of Allotment 16-03-2021
    • Refunds/Unblocking ASBA Fund 17-03-2021
    • Credit of equity shares to DP A/c 18-03-2021
    • Trading commences : 19-03-2021

About Easy Trip Planners

  • Easy Trip Planners, founded in 2008, is an online travel agency market with offices across various Indian cities, including Noida, Bengaluru, Mumbai and Hyderabad. It also has international offices in Singapore, the UAE and UK.
  • The company’s promoters are Nishant Pitti, Rikant Pittie and Prashant Pitti.
  • ETPL offers a range of travel-related products and services:
    • Airline tickets
    • Hotels and holiday packages.
    • Rail tickets, bus tickets, taxi rentals, travel insurance, visa processing and tickets for activities and tourist attractions.
  • It mainly derived its revenues from B2C but also has presence in B2E and B2B2C channels.
  • The company has been providing customers with the option of no convenience fee, when no other discount or promotion code is being availed.
  • Easy Trip earns more than 90% of its revenue through air tickets booked on its website and mobile application.
  • At the end of Dec 2020, it allowed customers had the choice to buy air tickets of two full-service and six low-cost airlines operating in India, and more than 400 full-service and nine low-cost airlines operating in other countries.
  • 75.25% of its air-ticketing revenue comes from inland tickets.
Easy Trip Planners IPO opens on Monday: here's all you need to know

Easy Trip Planners IPO: Financials

Particulars / Rs. In Cr.9mFY21Fy20Fy19FY18
Revenue from Operations49.25140.99101.11100.11
Revenue Growth (%)39.44%1.00%
EBITDA as stated43.3651.3244.8112.28
Profit Before Tax41.8447.5241.1810.53
Net Profit 31.1134.6523.990.03
Equity Share Capital21.7321.7321.737.24
Reserves112.480.9946.236.72
Net worth 134.12102.7267.9343.96
RoNW (%) 23.11%32.58%35.32%0.07%
NAV(₹ )12.169.326.2560.72
EPS (₹ ) 2.863.192.70.61
FV2
IPO Price187
FY20 EPS3.19
PE 58.64
Market Cap2032
Market Cap  /  Sales14.4

Pros

  • Easy Trip Planners Limited is one of the leading online travel agencies in India.
  • The company has a consistent track record of financial and operational performance with lean and cost efficient operations.
  • It has in-house advanced technology and analytics capabilities;
  • The company has been making profits.
  • It has  Wide distribution network supported by a hybrid platform.
  • Well-recognized brand with a targeted marketing strategy and customer centric approach
  • Experienced management team with an established track record.

Cons

  • There has been adverse effect of COVID-19 pandemic on the travel industry.
  • A significant portion of its Revenues are made for air tickets. Out of this a substantial portion of revenue from air ticketing segment has typically been dependent on five domestic airlines.

Easy Trip Planners IPO: Assessment

  • At the upper end of the price band, Easy Trip valuation is Rs 2,031 crore
  • Online that Easy Trip Planners operates under a highly competitive sector. Covid-19 pandemic has highly dented the travel and tourism industry.
  • Easy Trip Planners customer focused approach, including the option of no-convenience fee seems to have worked in its favour.
  • Easy Trip Planners which derives majority of its revenues from air tickets. It is now laying emphasis on Holiday package segment as well.
  • As per the company, it was the only profitable online travel agency among the key online travel agencies in India during FY18-FY20.
  • It has no listed peers. In 2010, online travel company MakeMyTrip got listed on the Nasdaq. other key players in the domestic online travel agency market include Cleartrip and Yatra Online.
  • I have a positive view on the company as even in lockdown, the company has demonstrated its strength and was able to report revenue of about Rs 50 crore in the first nine months of the current financial year, and its profitability has not been dented.
  • Easy Trip planners IPO was last reported to be commanding a GMP of Rs. 160-180.
  • Easy Trip IPO is demanding a P/E multiple of 58.6x based on FY20 EPS of Rs. 3.2.
  • I intend to apply in Easy Trip Planners IPO. The Easy Trip Planners IPO looks quite good both from the angle of listing gains as well as medium term/ long term portfolio.
  • A small IPO size with only 10% for retail would translate to very heavy subscription and low chances of allotment.

Standard disclaimer:  I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2)  Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors.  I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or  leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.

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