LGT Business Connextions Makes Flat Debut on BSE SME Platform
LGT Business Connextions Ltd., a travel and tourism service aggregator, listed on the BSE SME platform at ₹107, matching its IPO price. The IPO raised ₹28.09 crore with a 1.25 times overall subscription. Retail investors oversubscribed 1.75 times, while NIIs subscribed 0.75 times. The company plans to use the funds for capital expenditure, working capital, and general corporate purposes. LGT reported strong financial growth with revenue increasing by 13% to ₹100.80 crore and profit after tax rising 44.44% to ₹5.20 crore in FY25 compared to FY24.
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LGT Business Connextions Ltd., a travel and tourism service aggregator, made its debut on the BSE SME platform on Tuesday, August 26. The company's shares listed at par with its issue price of ₹107, reflecting a flat listing.
IPO Details
The company's initial public offering (IPO) raised ₹28.09 crore, comprising a fresh issue of ₹25.28 crore and an offer for sale of ₹2.81 crore. The IPO, which closed on August 21, saw an overall subscription of 1.25 times.
Subscription Breakdown
- Retail investors: 1.75 times oversubscribed
- Non-Institutional Investors (NII): 0.75 times subscribed
- Qualified Institutional Buyers (QIB): No bids received
Funds Utilization
The company plans to utilize the IPO proceeds for:
- Capital expenditure: ₹10.44 crore
- Working capital requirements: ₹7.70 crore
- General corporate purposes
Company Overview
Incorporated in 2016, LGT Business Connextions serves as a travel and tourism service aggregator, connecting customers with various travel-related services including hotels, airlines, cruises, car rentals, and visa services.
Financial Performance
The company has reported strong financial growth:
| Metric | FY25 | FY24 | Growth |
|---|---|---|---|
| Revenue | ₹100.80 crore | ₹89.20 crore | 13.00% |
| Profit After Tax | ₹5.20 crore | ₹3.60 crore | 44.44% |
The flat listing and mixed subscription rates across investor categories suggest a cautious market response to LGT Business Connextions' public debut. However, the company's recent financial performance, marked by double-digit revenue growth and a significant increase in profitability, may provide some confidence to investors looking at the long-term potential of the travel and tourism sector.
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