Travel aggregator ixigo to offload 10.1 pc stake to Prosus for Rs 1,296 cr

New Delhi, Oct 10 (PTI) Travel aggregator ixigo on Friday said it will raise Rs 1,296 crore from global technology investor and operator Prosus through a preferential issue of equity shares.

In a regulatory filing, ixigo (Le Travenues Technology Ltd) said it is offloading a 10.1 per cent stake to Prosus-affiliate MIH Investments One B V for Rs 1,295.56 crore (USD 146 million).

The board of directors of ixigo have approved the issuance of 4,62,70,092 equity shares for Rs 1,295.56 crore, representing 10.10 per cent of the post-issue paid-up equity share capital, by way of preferential issue on a private placement basis to MIH Investments One B.V, the filing said.

Prosus will invest Rs 1,295.56 crore (USD 146 million) for a 10.1 per cent stake in ixigo on a fully-diluted basis, corresponding to a share price of Rs 280 per share, a slight premium over the 10-day VWAP (Volume Weighted Average Price) of ixigo as on the relevant date for the transaction, the filing said.

In a statement, Prosus said, it is "pleased to share that the Board of ixigo ... has approved its offer of a primary investment of Rs 1,295.56 crore (USD 146 million) for a 10.1 per cent stake on a fully diluted basis in ixigo".

ixigo intends to utilise the proceeds for organic and inorganic growth opportunities, working capital needs, and general corporate purposes.

The travel booking platform plans to utilise up to 25 per cent of the proceeds (up to Rs 323.89 crore) towards organic growth initiatives, including new Artificial Intelligence (AI) platforms, products, and services; technology, including cloud infrastructure and software expenditure; supply expansion for its hotels OTA (online travel agencies) business; and advertisement and branding initiatives.

Besides, up to 25 per cent of the proceeds is proposed to be utilised towards unidentified acquisitions and inorganic growth opportunities, directly by the company or through its subsidiaries.

Out of the remaining 50 per cent proceeds, ixigo proposes to utilise up to 25 per cent towards meeting its working capital requirements driven by growth in its OTA business across flights, trains, buses and hotels; and the other 25 per cent towards meeting corporate exigencies and contingencies, rental payments and administrative expenses.

Prosus invests in high-growth markets, with a significant focus on India, Latin America, and Europe.

A long-term investor in India with over USD 8.6 billion capital deployed to date, Prosus has a diversified investment portfolio spanning across sectors such as e-commerce, food delivery, travel, payments & fintech. PTI RSN RSN MR