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EaseMyTrip aims for listing by March 31 despite travel slump

  • The corporate will look to take advantage of a surge in liquidity in main markets that has led to blockbuster demand for IPOs in current months.

By Rhik Kundu, Swaraj Singh Dhanjal | Livemint, New Delhi, Mumbai

PUBLISHED ON FEB 13, 2021 05:18 AM IST

EaseMyTrip is ready to turn into the primary Indian on-line journey agency to record on the native bourses because it prepares to launch a 510 crore preliminary public providing (IPO) by the top of March, mentioned two individuals with direct data of the matter.

The corporate will look to take advantage of a surge in liquidity in main markets that has led to blockbuster demand for IPOs in current months. It may, nevertheless, face the uphill job of convincing traders at a time when the journey trade is struggling to journey out of the hostile impression of the pandemic although information on coronavirus vaccines and a gradual revival within the home journey trade have raised hopes of a full restoration.

There’s numerous liquidity out there proper now, and that has been driving IPO offers. Buyers are keenly on the lookout for differentiated tales, and know-how firms are undoubtedly engaging at this level of time. With vaccines coming in and provided that Covid-19 instances have dropped, the journey sector, particularly home, will finally recuperate,” one of many two individuals cited above mentioned, asking to not be named.

Indian on-line journey companies MakeMyTrip and Yatra that went public to date did so abroad.

EaseMyTrip desires to launch its IPO earlier than March 31 as its approval from the Securities and Alternate Board of India (Sebi) expires by then, the individual mentioned.

He mentioned any failure to launch the share sale by March-end means it must revisit your entire course of, together with a contemporary submitting of its draft prospectus, which is able to stretch the itemizing plans by a number of months.

EaseMyTrip obtained the nod from Sebi for its IPO on January 30, 2020. Whereas such approvals are normally legitimate for a yr, the market regulator had prolonged the validity of approvals that had been to lapse between October and March to March-end as a result of pandemic.

EaseMyTrip’s co-founder Nishant Pitti declined to remark.

“The impression of covid-19 has considerably diminished journey demand when it comes to client sentiment and their capability to journey, which has induced airways and resorts in India and world wide to function at considerably diminished service ranges,” the corporate mentioned in an earlier disclosure to Sebi.

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