Easy Trip Planners Limited IPO is open for subscription from March 8-10th, 2021.

• Ranked 2^nd amongst the key Online Travel Agencies (OTAs) in India during nine months ending December 31, 2020, in terms of booking volumes
• The company recovered 70% booking volumes in the third quarter of FY21, better than its peers
• According to a CRISIL report, Easy Trip Planners is the only profitable travel agency among Key OTAs in India in fiscal 2018, 2019 and 2020
• For the year ending March 31, 2020, Easy Trip Planners was ranked 3^rd amongst the Key OTAs in India in terms of the Gross Booking Revenues
• Easy Trip Planners has an extensive network of 55,981 agents, which includes traditional travel agents
• Company’s peers include MakeMyTrip, Yatra.com and Cleartrip Pvt. Ltd.

About Easy Trip Planners

Easy Trip Planners offer a comprehensive range of travel-related products & services for end-to-end travel solutions. The company website is www.EaseMyTrip.com.

Product offerings include airline tickets, hotels and holiday packages, rail tickets, bus tickets, and taxis. Also on offer are ancillary value-added services such as travel insurance, visa processing and tickets for activities and attractions. As of the end of December 2020, Easy Trip provided access to more than 400 international and domestic airlines, more than 10,96,400 hotels in India and internationally. It also includes access to most railway stations in India and bus and taxi in major cities across India.

History of the business

The company commenced operations in 2008, focusing on B2B2C (a business to business to customer) distribution channel. It provided website access to travel agents to book domestic travel airline tickets and catered to India’s offline travel market.

Subsequently, in 2011, Easy Trip Planners started B2C (business to customer) distribution channel. Here the focus was to serve middle-class India’s travel requirements.

Finally, in 2013, the company expanded its presence in the B2E (business to enterprise) distribution channel to provide end-to-end travel solutions to corporates.

Business split across products and distribution channel

The below table sets forth information regarding the Gross Booking Revenues across Easy Trip’s products and services.

In Rs Cr

In Cr

Competitive landscape of OTAs in India

Below is the comparison of the Key Online Travel Agencies in India.

Other competitive parameters across Key OTAs

Numbers in Rs Cr

Important definitions:

Gross booking revenues

The amount paid by customers for travel products and services booked through OTAs. This revenue includes any fees, taxes, other charges and is net of cancellations, discounts and refunds

Operating revenues

The revenue from the sale of goods or services less any indirect taxes, plus the income from activities related to core business

Operating profit

Total operating revenues less costs excluding depreciation, amortization, interest expense, and taxes

About the Promoters

Mr Nishant Pitti, Mr Rikant Pittie and Mr Prashant Pitti are the promoters of the company. As per the red herring prospectus, promotors hold 100% of the pre-offer subscribed and paid-up equity share capital.

Financial Profile of Easy Trip Planners

Below is the condensed financial information of the company.

Amount in Rs Cr excluding per share data

• Healthy gross booking volumes and revenues growth
• Strong return on net worth
• No listed peers in India; hence peer comparison is not possible

Offer proceeds of Easy Trip Planners

 Purpose of the offer and utilization of IPO proceeds:

• Enhance visibility of the brand and provide liquidity to the existing shareholders
• Company will not receive any funds directly from the proposed IPO
• Easy Trip Planners will bear listing fees
• The promoters shall bear expenses other than listing fees

Easy Trip Planners IPO Factsheet

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The information provided in the red herring prospectus filed by the company with the Securities and Exchange Board of India (www.sebi.gov.in) is the basis for this note. However, I recommend that the reader validate the data before making any financial decision. Also, investment in an initial public offering (IPO) is subject to market risks. It should be evaluated, keeping your risk profile and investment objective in mind. The author will not be responsible for any financial loss or otherwise resulting from any action taken based on the above.

The author is a senior finance professional with over fifteen years of work experience in corporate finance and has an affinity for personal finance and investment management. Please leave your comment or share thoughts on this article via email at decodefinance.in@gmail.com. For more articles, please visit the website www.decodefinance.in

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