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IPO Note: Easy Trip Planners Ltd.
Issue Snapshot
Company Name Easy Trip Planners Ltd.
Issue Opens March 08, 2021 to March 10, 2021 Price Band Rs. 186 to Rs. 187
Bid Lot 80 Equity Shares and in multiples thereof.
The Offer Public issue of 27,272,727 Equity shares of Face valueRs. 2 each, (Comprising of Offer for Sale by Selling Shareholder).
Issue Size Rs. 510.0 Crore IPO Process 100% Book Building Face Value Rs. 2.00
Exchanges NSE & BSE
BRLM JM Financial Limited and Axis Capital Limited Registrar KFin Technologies Private Limited
Industry: Travel and Tourism
Date: March 05, 2021
Issue Break up
Issue Size Allocation Equity Shares*
QIB 30% 8,181,818 Anchor Investor 45% 12,272,727 HNI 15% 4,090,909 RII 10% 2,727,273 Total Public 100% 27,272,727
Company Highlights
➢ Easy Trip Planners Ltd. (ETPL) is ranked 2nd among the Key Online Travel Agencies (OTA) in India in terms of
booking volume in 9MFY21 and 3rd among the Key Online Travel Agencies in India in terms of gross booking revenues in FY20.
➢ ETPL is well known for its online tour web portal EaseMyTrip.com. and EaseMyTrip.in.
➢ ETPL offers a comprehensive range of travel-related products and services for end-to-end travel solutions.
Company’s products and services are organized primarily in the following segments: (i) airline tickets, which consists of the sale of airline tickets as well as airline tickets sold as part of the holiday packages; (ii) hotels and holiday packages, which consists of standalone sales of hotel rooms as well as travel packages; and (iii) other services, which consists of rail tickets, bus tickets, taxi rentals and ancillary value added services such as travel insurance, visa processing and tickets for activities and attractions.
➢ The company have been consistently profitable since incorporation, and according to the CRISIL Report, they were the only profitable online travel agency among the Key Online Travel Agencies in India in FY18, FY19 and FY20, in terms of net profit margin.
➢ Company’s 3 distinct distribution channels, namely B2C, B2E and B2B2C channels, provide them with a diversified customer base and wide distribution network.
➢ The company has been providing customers with the option of no-convenience fee, such that customers are not
required to pay any service fee in instances where there is no alternate discount or promotion coupon being availed.
➢ As of December 31, 2020, they provided their customers with access to more than 400 international and domestic airlines, more than 1,096,400 hotels in India and international jurisdictions, almost all the railway stations in India as well as bus tickets and taxi rentals for major cities in India.
➢ In addition, as of March 31, 2020, they had 55,981 travel agents registered with them across almost all major
cities in India and according to the CRISIL Report they had the largest network of travel agents among Key Online Travel Agencies as of such period. Further, the number of travel agents registered with them increased to 59,274, as of December 31, 2020.
Equity Share Pre-Issue (Nos. Cr.) 10.9 OFS Share (Nos. Cr.) 2.7 Equity Share Post Issue (Nos. Cr.) 10.9 Market Cap (Rs. Cr.) 2,031.7
Dilution 25.1%
* Based on Higher Price Band @ Rs. 575
Objects of the Offer
Offer for Sale
The Company will not receive any proceeds of the Offer for Sale by the Selling Shareholder. (up to Rs. 255 crore by Mr. Nishant Pitti and up to Rs. 255 crore by Mr. Rikant Pittie)
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➢ Besides B2B2C, B2C also provides B2E distribution channels. ETPL provides its customers with the most popular model option of no-convenience fees. Its pricing module has no hidden costs.
➢ ETPL have managed to develop a significant market share in the country due to the quality of its services, user-friendly websites, mobile applications (Android and iOS), customer-centric approach, and effective marketing programs.
➢ ETPL has a dedicated in-house technology team focused on developing a secure, advanced and scalable
technology infrastructure and software.
➢ In FY19, they recorded ‘Look-to-Book’ ratio of 5.08% on their websites and mobile applications in the B2C
channel while in FY20, it increased to 5.32%. In 9MFY21, their ‘Look-to-Book’ ratio was 3.43%.
➢ The company recorded a Booking Success Rate of 98.37% and 98.01% on their websites and mobile
applications in the B2C channel for domestic transactions in FY20 and 9MFY21, respectively.
➢ Between April 1, 2017 and December 31, 2020, they had a repeat transaction rate (calculated as % of
transactions by repeat customers, identified by their unique email address) of 85.95% in the B2C channel.
➢ Registered Customers in the B2C channel increased at a CAGR of 28.24% from 5.87 million customers as of
March 31, 2018 to 9.66 million customers as of March 31, 2020, and further increased to 10.32 million customers as of December 31, 2020. Further, their Gross Booking Volumes increased by 54.43% from 2.37 million in FY18 to 3.66 million in FY19 and by 48.36% to 5.43 million in FY20. The Gross Booking Volumes were 1.77 million in 9MFY21.
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➢ Easy Trip Planners Limited is one of the leading online travel agencies in India with a customer-focused
approach, including the option of a no-convenience fee.
➢ Easy Trip Planners has a dedicated in-house technology team focused on developing secure, advanced, and
scalable technology infrastructure and software. Its websites and mobile applications have been designed to provide customers with low-cost options and flexibility in choosing routes.
➢ The company has three distinct distribution channels, namely B2C, B2E, and B2B2C. These channels provide a
diversified customer base and a wide distribution network. They also enable the company to provide end-to-end travel solutions for passengers traveling domestically, as well as traveling to and from international destinations.
➢ The company market share in the total Indian online travel agency industry in terms of gross booking revenues was approximately 4.6%, and gross booking revenues for airline ticketing segment was approximately 5.5% -6.5%, in FY20.
➢ According to company management, it follows the most advanced and latest technology including mobile
applications for its operations that helps it for better cost controls and higher yields. This has helped word of mouth publicity for the company resulting in lower customer promotion expenses in percentage terms. Due to this, during the COVID-19 lockdown, it suffered a mild setback but has recovered speedily from Q2FY21 onwards.
➢ The company has historically financed working capital requirements and the expansion of business and
operations primarily through funds generated from operations, equity infusion from Promoters and debt financing.
➢ According to the rating agency CRISIl, India’s travel industry is expected to contract by 2% annually between FY20 and FY23 due to Covid-19.
➢ In terms of the valuations, on the higher price band, ETPL demands a P/E multiple of 49.8x based on annualized post issue fully diluted EPS of Rs. 3.7 in 9MFY21.
➢ There are no listed entities in India whose business portfolios are comparable with that of Easy Trip Planners. However, other key players in the domestic online travel agency market include Cleartrip, MakeMyTrip and Yatra Online.
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Month Domestic/International Recovery % 2020 2019
Trips (million) December Domestic 75.91% 0.72 0.54 International 34.35% 0.06 0.02 November Domestic 59.37% 0.81 0.48 International 29.83% 0.06 0.02 October Domestic 71.37% 0.77 0.55 International 39.86% 0.06 0.02 September Domestic 53.21% 0.68 0.36 International 22.38% 0.06 0.01 August Domestic 35.17% 0.69 0.24 International 7.94% 0.05 0 July Domestic 20.59% 0.76 0.16 International 3.54% 0.06 0
Key Performance Indicators
Robust recovery from July’2020
Particulars FY18 FY19 FY20 9MFY20 9MFY21
(Unconsolidated) (Consolidated)
Air Tickets 1,922.80 2,894.82 4,113.70 1,199.70
Hotels & Holiday Packages 19.74 33.84 58.52 8.98
Others 2.53 9.11 32.52 12.07
Gross Booking Revenues (₹ in Cr) 1,945.06 2,937.78 4,204.73 3,178.80 1,220.76
Gross Booking Volumes (Cr) 0.24 0.37 0.54 0.41 0.18
Gross Booking Volumes – Airline Tickets B2C (Cr) 0.19 0.31 0.44 0.33 0.15 Gross Booking Volumes- Airline Tickets -B2B2C (Cr) 0.05 0.04 0.06 0.04 0.01 Gross Booking Volumes – Airline Tickets -B2E (Cr) 0.01 0.01 0.01 0.01 0.01
Trips (Cr) 0.47 0.64 0.9 0.67 0.27
Average Number of Trip Booked per day 12,885 17,490 24,494 24,376 9,758
Look-to-book ratio (%) 5.95% 5.08% 5.32% 5.55% 3.43%
Website visits (Cr) 2.26 4.22 5.16 3.79 2.82
Mobile application downloads (Cr) 0.16 0.25 0.42 0.37 0.55
Direct Traffic Percentage (%) 54.54% 39.37% 42.56% 41.45% 64.93% Mobile Traffic Percentage (%) 65.18% 73.82% 80.67% 79.39% 87.15%
Booking Success Rate (%) 97.97% 98.44% 98.37% 98.46% 98.01%
Average minutes spent per session 4 Min 40 Sec 3 Min 58 Sec 3 Min 58 Sec 4 Min 2 Sec 3 Min 25 Sec
Registered Customers (Cr) 0.59 0.81 0.97 0.93 1.03
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(In Rs. Cr) FY18 FY19 FY20 9MFY21
Cash flow from Operations Activities 12.8 70.2 47.8 56.0
Cash flow from Investing Activities 4.7 (42.0) (68.6) (24.5)
Cash flow from Financing Activities (12.2) (1.7) (0.3)
-Net increase/(decrease) in cash and cash equivalents 5.3 26.4 (21.0) 31.5 Cash and cash equivalents at the beginning of the year 2.4 7.7 34.1 13.1 Cash and cash equivalents at the end of the year 7.7 34.1 13.1 44.6
Source: RHP
Comparison with listed industry peers
Financial Statement
Cash Flow Statement
(In Rs. Cr) FY18 FY19 FY20 9MFY21
Share Capital 7.2 21.7 21.7 21.7
Net Worth 44.0 67.9 102.7 134.1
Total Long Term Liabilities 1.0 34.7 40.6 28.9
Total Current Liabilities 135.3 140.4 139.0 194.0
Fixed Assets 16.2 15.5 10.5 10.5
Non Current Assets 8.3 2.7 19.2 72.5
Current Assets 155.8 224.8 252.6 273.9
Total Assets 180.3 243.1 282.3 357.0
Revenue from Operations 100.1 101.1 141.0 49.3
Revenue Growth (%) 1.0 39.4
EBITDA (1.2) (5.2) 12.6 11.3
EBITDA Margin (%) (1.2) (5.1) 8.9 23.0
Net Profit 6.6 29.3 34.6 31.1
Net Profit Margin (%) 6.6 29.0 24.6 63.2
Earnings Per Share (Rs.) 0.0 2.2 3.0 2.8
Return on Networth (%) 0.1 35.3 32.6 23.1
Net Asset Value per Share (Rs.) 60.7 6.3 9.3 12.2
Source: RHP, Ashika Research
There are no listed companies in India that engage in a business similar to that of the Company. Hence, it is not possible to provide an industry comparison in relation to the Company.
Revenue from Operations – Business Segment-wise
FY18 FY19 FY20 9MFY21
Revenue
(Rs. in Cr) Total % to (Rs. in Cr) Revenue Total % to (Rs. in Cr) Revenue Total % to (Rs. in Cr) Revenue Total % to Rendering of services 99.19 99.1% 91.16 90.2% 124.29 88.2% 46.05 93.5%
– Air passage 97.33 97.2% 88.56 87.6% 113.37 80.4% 46.64 94.7%
– Hotel Packages 1.63 1.6% 2.43 2.4% 10.17 7.2% -0.56 -1.1%
– Other Services 0.23 0.2% 0.17 0.2% 0.75 0.5% 0.35 0.7%
Other Operating Revenue 0.92 0.9% 9.95 9.8% 16.7 11.8% 3.2 6.5%
– Advertisement Revenue 0.92 0.9% 9.95 9.8% 16.7 11.8% 3.2 6.5%
Ashika Stock
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Ashika Stock Broking Limited (“ASBL”) started its journey in the year 1994, and is presently offering a wide bouquet of services to its valued clients including broking services, depository services and distributorship of financial products (Mutual funds, IPO & Bonds). It became a “Research Entity” under SEBI (Research Analyst) Regulations 2014 in the year of 2015 (Reg No. INH000000206).
ASBL is a wholly owned subsidiary of Ashika Global Securities (P) Ltd., a RBI registered non-deposit taking NBFC Company. ASHIKA GROUP (details enumerated on our websitewww.ashikagroup.com) is an integrated financial service provider inter alia engaged in the business of Investment Banking, Corporate Lending, Commodity Broking, Debt Syndication & Other Advisory Services.
There were no significant and material disciplinary actions against ASBL taken by any regulatory authority during last three years except routine matters.
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