What You Must Know About Travels & Rentals IPO: Price Band ₹40 Per Share

About Travels & Rentals Limited 

Travels & Rentals Limited, incorporated in 1996, provides a wide range of travel-related products and services for complete travel solutions. The company offers airline tickets, hotels, tour packages, rail tickets, additional services like travel insurance, passport & visa processing, and tickets for activities and attractions.

The company's management team has extensive industry experience. The promoters, Mr. Devendra Bharat Parekh, Mrs. Karuna Parekh, Mrs. Anupama Singhi, and Mr. Tushar Singhi, have been instrumental in the company's growth.
Travels & Rentals Limited's business model focuses on providing comprehensive travel solutions. The company operates on customer focus, service excellence, integrity, trust-building, innovation, and reliability.

To expand its reach and operations, the company has established a strong network with travel agents in Europe, the USA, South and Southeast Asia, the Middle East, Africa, and Australia.

The Objective of the Issue 

The primary objectives of the Travels & Rentals IPO are:

1. Working Capital Requirement

2. General Corporate Expenses

Highlights of the Travels & Rentals IPO

Travels & Rentals Limited is launching its IPO on the BSE SME segment. Here are the key details of the IPO:

• The issue opens for subscription on 29th August 29 2024, and closes on 2nd September 2024.
• Travels & Rentals IPO shares have a face value of ₹10 per share.
• This is a fixed price issue with the price set at ₹40 per share.
• The IPO consists only of a fresh issue component, with no offer for sale (OFS) portion.
• The company will issue 30,60,000 shares, which amounts to a fresh fundraising of ₹12.24 crore.
• The issue includes a market-making portion with an allocation of 1,53,000 shares. Black Fox Financial will serve as the market maker for the issue.
• The promoter holding in the company currently stands at 86.48%. After the fresh IPO shares issue, the promoter equity holding will be diluted to 62.86%.
• The company will use the funds raised from the fresh issue for working capital requirements and general corporate purposes.
• Finshore Management Services Limited is the book-running lead manager for the issue, and Cameo Corporate Services Limited is the registrar.

Travels & Rentals IPO: Key Dates

 
Travels & Rentals IPO opens on Thursday, 29th August 2024 and closes on Monday, 2nd September 2024. The bid dates are from 29th August 2024, at 10:00 AM to 2nd September 2024, at 5:00 PM. The cut-off time for UPI mandate confirmation is 5 PM on the issue closing day, 2nd September 2024.

Travels & Rentals IPO Issue Details/ Capital History

Travels & Rentals IPO is set to raise ₹12.24 crore through Initial Public Offering (IPO). The issue comprises 30,60,000 equity shares with a face value of ₹10 each, priced at ₹40 per share. The Travels & Rentals IPO will open for subscription on 29th August 2024 and close on 2nd September 2024. Investors can apply for a minimum of 3,000 shares. The company's shares will be listed on the BSE SME platform post-issue. Finshore Management Services Limited is the book running lead manager, while Cameo Corporate Services Limited is the registrar. Black Fox Financial will participate as a market maker, subscribing to 1,53,000 shares.

IPO Allocation and minimum investment lot size 

Travels & Rentals IPO has announced the market maker allocation at 1,53,000 shares as inventory for market making. Black Fox Financial will serve as the market maker for the IPO. The breakdown of the overall IPO allocation to various categories is as follows:

The minimum lot size for IPO investment is 3,000 shares. Retail investors can invest a minimum of ₹120,000 (3,000 x ₹40 per share) in the IPO. This is also the maximum that retail investors can invest. HNI/NII investors can invest a minimum of 2 lots, comprising 6,000 shares with a minimum lot value of ₹240,000. The table below shows the break-up of lot sizes for different categories:

SWOT Analysis: Travels & Rentals Limited

Strengths:

• Experienced leadership with extensive experience in the travel industry 
• Strong network with travel agents across multiple countries 
• Accreditation from IATA and recognition from the Ministry of Tourism, India Comprehensive range of travel-related products and services

Weaknesses:

• Competitive nature of the travel industry 
• Potential dependency on key management personnel 
• Vulnerability to economic fluctuations affecting travel demand

Opportunities:

• Growing demand for travel services in India and globally
• Potential for expansion into new markets and services 
• Increasing trend of online travel bookings

Threats:

• Intense competition from established travel companies and online platforms 
• Economic downturns affecting travel spending 
• Geopolitical tensions or health crises impacting international travel

Financial Highlights: Travels & Rentals Limited

The table below presents the key financials of Travels & Rentals Limited for recent periods:

BSE

Travels & Rentals Limited has shown significant growth in its revenue from operations, increasing from ₹290.59 Lakhs in FY2022 to ₹579.06 Lakhs in FY2023 and further to ₹803.54 Lakhs in FY2024. This represents a remarkable year-on-year growth trajectory of 99.27% from FY2022 to FY2023 and 38.77% from FY2023 to FY2024.

The company's Profit After Tax (PAT) has also shown substantial improvement, rising from ₹69.01 Lakhs in FY2022 to ₹150.64 Lakhs in FY2023 and reaching ₹296.55 Lakhs in FY2024. This translates to an impressive PAT growth of 118.29% from FY2022 to FY2023 and 96.86% from FY2023 to FY2024.

The Net Worth of the company has consistently increased, from ₹490.88 Lakhs in FY2022 to ₹741.52 Lakhs in FY2023 and further to ₹1,478.48 Lakhs in FY2024, indicating a strengthening financial position.

The company has managed to reduce its Total Borrowing from ₹755.41 Lakhs in FY2022 to ₹560.97 Lakhs in FY2023 and further to ₹470.94 Lakhs in FY2024, suggesting improved financial management and reduced reliance on debt.