It’s Travel Company IPO Season in India!

If you thought the IPL season in India was big, just wait until you hear about the IPO season. Following TBO Tek’s debut on the Indian stock exchange last month, online travel company Ixigo listed on the Indian bourses this week. Join Skift’s Peden Doma Bhutia and Bulbul Dhawan as they discuss the market sentiment towards travel IPOs. Also, discover why Air India’s CEO stated that the airline’s investment in new aircraft will depend on the government’s policies on bilateral agreements and seat capacity grants, and why Accor’s CEO finds opening a hotel in India to be a tedious process. Catch all this and more in the latest edition of the Skift India Travel Podcast

Key Points

Here are five key takeaways from the podcast transcript:

Ixigo IPO Details: Ixigo is set to open its IPO aiming to raise about $89 million. Initially, it had planned to raise $192 million in 2021 but chose to wait. The raised funds are intended for working capital, cloud infrastructure, technology, and unidentified acquisitions.

Positive Market Sentiment: There is a positive response to recent travel industry IPOs, indicating a bullish outlook on the Indian travel market. Examples include TBO Tek’s IPO being subscribed nearly 87 times and Apeejay Surendra Park Hotels’ IPO being subscribed 60 times.

Political Influence on Stock Market: The Indian stock market’s performance is significantly influenced by the political scenario. For instance, stock market highs and lows have been closely linked to election results and political stability, affecting investor confidence and market dynamics.

Accor’s Challenges in India: Accor faces regulatory challenges in India, where it takes about six years to open a hotel, compared to two years in the U.S. and three years in Europe. Despite the slow growth, Accor is keen on the India market, aiming to revamp its strategy and capitalize on the growing middle class and increasing travel demand.

Sports Tourism Growth: Sports tourism is on the rise in India, with a significant surge in demand for big-ticket events like the IPL and international sporting events. This trend reflects the growing spending power and enthusiasm for live sports experiences among Indians.

Listen Now

Edisode Notes

In this episode, Asia Editor Peden Doma Bhutia and India reporter Bulbul Dhawan focus on Ixigo’s IPO, which is aiming to raise $89 million. Initially, Ixigo planned to raise $192 million in 2021 but delayed due to market conditions. The raised funds will be used for working capital, cloud infrastructure, and acquisitions.

The podcast also highlights the upswing in the travel industry IPOs, including TBO Tek and Apeejay Surrendra Park Hotels. The timing of these IPOs aligns with positive market sentiment in India’s travel sector.

The conversation shifts to political influences on the stock market, noting fluctuations around election results. The stability under Prime Minister Narendra Modi’s government has bolstered investor confidence.

Accor’s CEO, Sebastian Bazin, discussed India’s complex regulatory environment, which delays hotel openings compared to Europe and the U.S. Despite challenges, Accor is optimistic about India’s market potential, driven by a growing middle class and increased travel demand.

Air India CEO Campbell Wilson emphasized the need for government intervention in bilateral agreements to protect Indian carriers. Middle Eastern carriers are keen to expand in India, but Wilson advocates for supporting Indian airlines first.

The episode also covers the rise in sports tourism, with significant demand for major events like the IPL and T20 World Cup. Finally, they discuss the impact of heatwaves on domestic travel, leading many Indians to prefer international destinations.