The board of Ixigo’s parent approved the issue of 4.62 crore equity shares, amounting to 10.1% of the company’s outstanding equity, through a preferential issue of shares on a private placement basis to MIH Investments One B.V.
The shares will be issued at a price of ₹280 per share, which is a 10% discount to Ixigo’s closing price on Friday.
Proceeds raised from this preferential issue of shares will be divided into four equal parts for utilization, which include organic growth opportunities, inorganic growth opportunities, working capital requirements, and general corporate purposes.
Here’s how the company plans on Organic Growth:
- Via new AI platforms, products and services, including R&D
- Technology and other related costs
- Product enhancement and supply expansion for the Hotels OTA business
- Advertisement and branding initiatives
It plans on using these funds for organic growth by December 31, 2028.
25% of the proceeds will be used towards inorganic growth by the company or its subsidiaries, without limitations, through mergers, takeovers, acquisition by slump sales and other measures.
“If such unidentified acquisition and growth opportunities do not materialize within the timeline mentioned below, then the unutilized proceeds allocated for this purpose will be utilized for organic growth measures,” the company stated in its exchange filing.
25% of the proceeds will also be used for working capital purposes, which is driven by the growth seen in the company’s OTA business across flights, trains, buses and hotels.
The rest will be used for general corporate purposes, including rent payments, administrative expenses, employee and other personal expenses, capex needs and other such expenses.
The utilization of the proceeds for these purposes could have a deviation of plus or minus 10%, depending on the circumstances, Le Travenues Tech said in its release.
An Extraordinary General Meeting (EGM) of the company has also been convened at 2 PM on Saturday, November 1, to seek shareholder approval for this fund raise.
Shares of Le Travenues Technology ltd. ended 6% higher on Friday at ₹312.5. The stock has had a volatile last one month, but has managed gains of 4% during this period.
