Ixigo's Dream Listing Continues As Shares Surge 13% And Nomura Buys ₹103 Cr Stake

Shares of Le Travenues Technology, the parent company of Ixigo, gained 13% on Wednesday's trading session after Nomura picked up a stake worth ₹106.55 crore in the company through bulk deals. 

What Happened: Ixigo got listed on the exchanges on Tuesday after its IPO. The stock was listed at ₹138.10, a 48.5% premium over its listing price of ₹93. The stock closed at ₹165.72 on Wednesday. 

Nomura through 2 entities picked up a stake in Le Travenues Technology totalling ₹106.55 crore. Nomura Funds Ireland acquired 45.50 lakh shares at an average price of ₹159.09, buying ₹72.39 crore worth of equity. Meanwhile, Nomura Trust and Banking Co, listed as the trustee of Nomura Indian stock mother fund, picked up 21.47 lakh shares at ₹159.09 per share, buying ₹34.16 crore worth of shares. 

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Overall, Nomura bought a 1.81% stake in the company. 

Talking about the shares path ahead, Riyank Arora, technical analyst, Mehta Equities said, “Listed on 18th June 2024, there is very limited data on the technical charts of IXIGO. Immediate support, as per the signals on lower time frames, is placed around 180.00. Below this, the next support is around 160.00. Overall, technically the stock looks poised for an upside move towards 200.00 and 225.00, but the risk-reward ratio at current levels is unfavourable. However, on a pullback towards 170.00, we can consider buying this stock with a strict stop loss of 160.00 for potential targets of 200.00 and 225.00.”

Courtesy: Anand Rathi

Jigar S Patel, senior manager, technical research analyst, Anand Rathi Shares and Stock Brokers said, “IXIGO’s stock is currently exhibiting technical levels that traders should watch closely. The support level is at ₹180, which means that this price point is likely to act as a strong foundation where buying pressure is sufficient to prevent the stock from declining further. Conversely, the resistance level is at ₹198, where selling pressure may be strong enough to cap any upward price movements. Should IXIGO achieve a decisive close above the Rs 198 level, it may signal a breakout, potentially propelling the stock further upward to Rs 215. This indicates a bullish trend and the possibility of continued price appreciation. For short-term trading, the stock is expected to fluctuate within a range of ₹175 to₹215, providing a strategic window for traders to plan their buying and selling actions based on these critical price points.”

The technology company's IPO saw a total subscription of  98.34 times. The non-institutional investors (NII) category saw the most activity, with a subscription of 110.53 times. The Qualified Institutional Buyers (QIBs) category has been subscribed 106.73 times. The retail individual investors (RII) portion was subscribed 54.85 times. 

The company plans to use the net proceeds from the IPO for prepayment or scheduled repayment of existing borrowings, financing working capital requirements, and addressing general corporate purposes.

Price Action: Shares of Ixigo rose 13.66% to ₹188.36 on Wednesday morning. 

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