EaseMyTrip lists at 13.5% premium – but gives up some of the listing gains soon after

• The company had seen its IPO being oversubscribed by 159.33 times the offer value.
• EaseMyTrip’s IPO comes at a time when the fears of another lockdown are surging in the country, which could potentially affect travel.
• However, ahead of its IPO, EaseMyTrip seemed optimistic about the travel industry.

Easy Trip Planners Ltd, the parent company of online travel aggregator platform EaseMyTrip, which made its debut in the stock market today, saw its share price list at ₹212.25 at 9.50 am, 13.5% higher than the IPO issued price of ₹186-187 per share.

However, within minutes of trading the share price fell to ₹204 at 10.13 am.

Since its listing, the company’s market value rose to ₹2,305 crore.

In the grey market, the shares of the company were trading at ₹160-165, as per reports. However, the grey market is not an official measure of the market premium.

The company had seen its IPO being oversubscribed by 159.33 times the offer value, with its QIB portion being subscribed 78 times, HNI 384.26 times and retail 70.78 times.

EaseMyTrip’s IPO comes at a time when the fears of another lockdown are surging in the country, which could potentially affect travel. With the rising number of COVID-19 cases, several states have issued advisory while many cities are now subject to lockdowns or night curfews.

However, ahead of its IPO, EaseMyTrip seemed optimistic about the travel industry. “In our third quarter of 2020, we have already recovered 70% of where we were during the same period last year,” Prashant Pitti, director at Easy Trip Planners (the parent company of EMT) told Business Insider in an interview.

The company is an exception among a large pool of internet companies, which have tried to get listed – EaseMyTrip has bootstrapped its way to the public markets.

Founded in 2008, the company is India’s second largest travel aggregator. EMT claims to have achieved profitability and calls itself “the only profitable company among key OTAs (online travel aggregators) in India”.

According to a CRISIL report, as of FY20, EMT had a market share of 5% in India. However, the company believes that it would have gained market share in the last year.

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