Travel platform ixigo to offload 10.1% stake to Prosus for ₹1,296 crore

Ixigo board approves issuance of 4.63 crore equity shares worth ₹1,295.56 crore to MIH Investments, representing 10.1% post-issue stake via preferential private placement

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Travel platform ixigo on Friday said it will raise ₹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 (MIH Investments One B V) for ₹1,295.56 crore ($146 million).

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

Prosus will invest ₹1,295.56 crore ($146 million) for a 10.1 per cent stake in ixigo on a fully-diluted basis, corresponding to a share price of ₹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.

ixigo intends to utilise the proceeds for organic and inorganic growth opportunities, working capital needs, and general corporate purposes, the travel-tech firm said in a statement.

In June 2024, ixigo had listed at an issue price of ₹93 per share.

Prosus (MIH Investments One B V) invests in high-growth markets, with a significant focus on India, Latin America, and Europe.

A long-term investor in India with over $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.