NewsCorporate ActionsIxigo Parent Company to Raise ₹1,296 Crore Through Preferential Share IssueIxigo Parent Company to Raise ₹1,296 Crore Through Preferential Share Issue
Le Travenues Technologies Ltd., parent of travel aggregator Ixigo, plans to raise ₹1,296 crore by issuing 4.62 crore equity shares at ₹280 per share to MIH Investments One B.V., a Prosus unit. The issue price represents a 10% discount to the closing price. The funds will be equally allocated for organic growth, inorganic expansion, working capital, and general corporate purposes. The company's shares ended 6% higher at ₹312.50 following the announcement.
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Le Travenues Technologies Ltd., the parent company of travel aggregator Ixigo, has announced plans to raise ₹1,296 crore through a preferential issue of equity shares. This move marks a significant development for the company and could potentially impact its growth strategy.
Key Details of the Share Issue
| Aspect | Details |
|---|---|
| Issuer | Le Travenues Technologies Ltd. |
| Investor | MIH Investments One B.V. (a Prosus unit) |
| Number of Shares | 4.62 crore equity shares |
| Issue Price | ₹280.00 per share |
| Total Amount | ₹1,296.00 crore |
| Discount | 10% to the closing price |
| Equity Stake | 10.1% of outstanding equity |
Allocation of Funds
The company has outlined a balanced approach for utilizing the raised capital, dividing it equally across four key areas:
- Organic Growth Opportunities: Development of AI platforms and expansion of the hotel business.
- Inorganic Growth: Potential acquisitions to strengthen the company's market position.
- Working Capital Requirements: Support for ongoing operations and business needs.
- General Corporate Purposes: Overall business enhancement and flexibility.
Le Travenues Technologies has set a timeline to utilize the funds allocated for organic growth by December 31, 2028, indicating a long-term strategic approach to its expansion plans.
Market Response
The market has responded positively to this announcement:
- Le Travenues Technology's shares ended 6% higher at ₹312.50.
- The stock has gained 4% over the past month, despite market volatility.
This preferential share issue represents a significant move for Le Travenues Technologies, potentially providing the company with the necessary capital to fuel its growth initiatives and strengthen its position in the travel aggregator market.
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