Easy Trip Planners IPO (EasyMyTrip IPO) – Date, Issue Details, GMP, Review and Analysis
New Delhi based Easy Trip Planners IPO would open for subscription on 8th March, 2021. Easy Trip Planners is a 2nd largest online travel agency in India and operates the travel bookings through easymytrip.in, easymytrip.com and mobile app. Though the company has just 6% market share, it is able to generate solid profits in the last 3 years 9 months. While covid-19 has affected company business to some extent, it has started recovering from the second quarter of FY21. Should you invest in Easy Trip Planners IPO? What are the risk factors you should consider before investing EasyMyTrip IPO?
About Easy Trip Planners
They are ranked second among the Key Online Travel Agencies in India in terms of the booking volume in the 9 months ended December 31, 2020 and third among the Key Online Travel Agencies in India in terms of gross booking revenues in Fiscal 2020.
They offer a comprehensive range of travel-related products and services for end-to-end travel solutions, including airline tickets, hotels and holiday packages, rail tickets, bus tickets and taxis as well as ancillary value added services such as travel insurance, visa processing and tickets for activities and attractions.
As of December 31, 2020, they provided their customers with access to more than 400 international and domestic airlines, more than 1,096,400 hotels in India and international jurisdictions, almost all the railway stations in India as well as bus tickets and taxi rentals for major cities in India.
In addition, as of March 31, 2020, they had 55,981 travel agents registered with them across almost all major cities in India.
|Easy Trip Planners IPO / EasyMyTrip IPO Details|
|IPO Opening Date||08-Mar-21|
|IPO Closing Date||10-Mar-21|
|Issue Type||Book Built Issue IPO|
|Face Value||Rs 2 per equity share|
|IPO Price band||Rs 186 to Rs 187 per equity share|
|Market Lot||80 Shares|
|Min Order Quantity||80 Shares|
|Listing at||BSE and NSE|
|Issue Size||Total Rs 510 Crores
Offer for Sale: Rs 510 Crores
Objects of issue – Easy Trip Planners IPO
Here are the objects of the IPO issue.
1) Offer for sale (OFS): Under OFS, it would allow selling shareholders to sell equity shares. The company would not get any proceeds from this issue.
2) Company expects that listing gains would enhance brand value and provide liquidity to its existing shareholders.
Who are the company promoters?
Mr. Nishant Pitti, Mr. Rikant Pittie and Mr. Prashant Pitti are the promoters of the company.
Here is the summary of the financial information of the company.
|Total Revenues (Rs in Millions)||Profits after tax
(Rs in Millions)
|9 Months ending Dec-20||815.7||311.0||38.1%|
Its EPS for FY2020 is Rs 3.04 and last 3 years average EPS is Rs 2.26.
Why to invest in this IPO?
Here are a few reasons to invest.
1) Easy Trip Planners are a second largest online travel agency in India in terms of volume and 3rd largest in terms of revenues.
2) Strong revenue growth in the last 3 year and 9 months. While its revenues impacted due to covid, it started recovering from 2nd quarter of FY21.
3) Its margins improved in the last 3 years. Its 9 months ended Dec-20 profits are high at 38.1%. Multifold jump in profits in FY19, FY20 and 9 months ended Dec-20 raised eyebrows.
Risk Factors of investing in this IPO
These risk factors can impact company revenue and margins which would affect its share price. Investors should go through these points and understand them before investing.
1) Covid pandemic has an impact on company business. This would continue to impact in future too for the next couple of quarters till the vaccination is complete and travel restrictions are removed in India and all over the world.
2) Its trade receivables and payables are rising. Its bank deposits also declined by over 50%.
3) The company is dependent on airline ticketing business which is their significant %age of its revenue. This is derived from the small number of airline suppliers in India. In case there is any disruption of such supplies, it would have an impact on company business
4) Travel and related services industry in India is highly competitive. Competitors newer technologies can take away company business
5) The company depends majorly on commission from travel suppliers like airlines, GDS and API service providers. Any reduction or elimination of such commission / incentive can impact company business
6) Company has limited experience and operating history in certain of its businesses, particularly in hotels and holiday packages, railway ticketing operations. This makes it difficult to accurately assess the future growth in such segments and can impact negatively and affect its business, cash flows and financial condition of the company.
7) For complete internal and external risk factors, you can refer the RHP of the company.
|Easy Trip Planners IPO Schedule|
|Finalization of Allotment||16-Mar-21|
|Initiation of Refunds||17-Mar-21|
|Credit to Demat Account||18-Mar-21|
|IPO Shares Listing Date||19-Mar-21|
How to apply Easy Trip Planners IPO?
You can login to your demat account, visit IPO section and click on Easy Trip Planners IPO link. You can then enter minimum lot quantity and price band and then submit.
How to apply Easy Trip Planners IPO through Zerodha?
You can follow below process to apply Easy Trip Planners IPO on Zerodha.
1) Visit the Zerodha website and log in to Console.
2) Go to Portfolio and click the IPOs link.
3) Go to Easy Trip Planners IPO link and click on Bid option.
4) You can enter your UPI ID, Qty and Price for which you want to apply.
5) Click on Submit IPO application form
6) You can visit the UPI App (net banking or BHIM which you opted) to approve the mandate.
7) You can visit Zerodha IPO Application Process and check for more information.
How are Easy Trip Planners IPO price Valuations?
1) On the upper price band of Rs 187 and EPS of Rs 3.04 for FY20, the P/E ratio works out to be 61x.
2) For the last 3 years average EPS of Rs 2.26, the P/E ratio is 82.7x.
3) If we annualize its 9 months ending Dec-20 EPS for FY21, the P/E works out to be 50x.
4) Means, the company asking price of Rs 187 the upper price band in the P/E range of 50x to 61x.
5) There are no listed peers who are working in similar business, hence we cannot ascertain whether the issue price is underpriced or overpriced. However, considering over 50x P/E, definitely this is overpriced.
Easy Trip Planners IPO Review – Should you invest?
Easy Trip Planners are a second largest online travel agency in India in terms of volume and 3rd largest in terms of revenues.
This company gets over 85% of repeat business from B2C segment.
Easy Trip Planners have stable revenue growth in the last 3 years and 9 months. It is generating consistent and improved margins. The company claims that it is using sophisticated technology which is helping them to cut costs and improve margins which is genuine and true.
For me, Easy Trip Planners IPO share price is over priced. In the current bull run, I know that investors would still apply even when such IPO’s are overpriced.
High Risk Investors can apply for long term perspective. Since this company is the first company to get listed in its industry, one can expect listing gains too.
FAQs about EasyMyTrip IPO
What is an Easy Trip Planners IPO?
EasyMyTrip is the 2nd largest online travel agency in India. It is coming up for IPO now.
When Easy Trip Planners IPO would open?
Easy Trip Planners IPO would open on 8th March, 2021 and closes on 10th March, 2021.
What is the lot size of Easy Trip Planners IPO?
One can apply Easy Trip Planners IPO in the lot size of 80 shares. Minimum order is 80 shares and in multiples of 26 shares there-off.
When is Easy Trip Planners IPO allotment?
Easy Trip Planners IPO would get closed on 10th March, 2021. Post this, finalization of IPO shares would happen on March 16, 2021. Shares would be credited into demat account by March 18, 2021.
When is Easy Trip Planners IPO listing?
This IPO listing is tentatively on March 19, 2021.
What is Easy Trip Planners Grey Market Premium (GMP)?
Easy Trip Planners IPO GMP is fluctuating marginally, however, is trading at 95% to 100% (premium). This indicates that IPO may get strong listing.
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