Travels & Rentals IPO: Review, Valuation, Date & GMP

Travels & Rentals IPO-Complete Overview

Travels & Rentals IPO an SME IPO is a fixed price issue of Rs.12.24 crore by Travels & Rentals Ltd. which was founded in 1996 and offers a comprehensive range of travel-related goods and services. In addition to travel insurance, passport and visa processing, and tickets for activities and attractions, the company sells airline tickets, hotels, tour packages, and rail tickets.

The following are some of the company's offerings:

• Booking tickets for both domestic and international travel.

• Packaged Tours: customized inbound and outgoing tours.

• Hotel Reservation: Travel the world with hotel packages and reservations.

• Visa, Passport, Insurance, and further specialized services in connected fields.

With travel agencies across Europe, the USA, South and Southeast Asia, the Middle East, Africa, and Australia, the organization has a robust global network. 

The International Air Transport Association (IATA) in Geneva, Switzerland, has granted the corporation accreditation. It is also a member of the Indian Association of Tour Operators (IATO) and the Travel Agent Association of India (TAAI), as well as the Ministry of Tourism, Government of India.

This new SME IPO is to be launched on 29 August 2024, and its ‘initial public offering’ will end on 02 September 2024.

Travels & Rentals IPO Overview

The Rs.12.24 crore Travels & Rentals Ltd. IPO consists of a wholly fresh issue of 30.6 lac Shares.

This SME IPO date is from August 29-September 02, 2024. The expected IPO listing date is Thursday, September 05, 2024, on BSE and SME. Travels & Rentals IPO price band is Rs.40 for each Share.

To open a demat account and apply for the IPO, Click Here.

Company Financial

The company’s revenue rose by 39% and PAT increased by 97% during FYs ending 31 March 2024 and 31 March 2023.

Below is the synopsis of the company's financial data for the period that concluded 31 March 2024.

• The total assets of the company are Rs.2,469.85 lac.

• The total revenue of the company is Rs.803.54 lac.

• The company’s PAT is Rs.296.55 lac.

• The net worth of the company is Rs.1,478.48 lac.

• The company’s EBITDA is Rs.434.79 lac.

(Amount in Lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Product-wise Breakdown of Revenue From Operations 

(Amount in lac)

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Working Capital needs.

• General corporate purposes.

Peers of Travels & Rentals Ltd.

Evaluation

The IPO price is Rs.40 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.3.64 from the last year, the resulting P/E ratio is 10.99x.

Considering the weighted EPS of Rs.10.85 for the last three years, the P/E ratio is 3.69x.Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is NA.

IPO's Strengths 

• Stability of the organization combined with managerial proficiency.

• Excellent and Skilled Employees

• Product Offering

• Scalable Business Model

• Seamless operating flow

 

IPO’s Weaknesses

• The travel market is very competitive, and it's possible that the company won't be able to do so in the future.

• Any interruption in the availability of airline, rail, and bus tickets, as well as a decline in the demand for lodging, associated services, and other travel-related items, or a rise in the cost of these items, might harm the business operations, revenue, and profitability.

• The travel business is vulnerable to unrelated events both domestically and internationally. The travel industry's downturn or interruptions could hurt its financial and business success.

• As of March 31, 2024, the company had taken out an unsecured debt of Rs.63.56 lac, which is recoverable at any time.

• The company had a negative cash flow from its operating, investing, and financing activities in the past FYs, and sustained negative cash flow could impact its growth and business.

Travels & Rentals IPO GMP Today

Travels & Rentals IPO GMP today is Rs.12 as of 28 August 2024.

IPO Timetable (Tentative)

The IPO date is from August 29 to September 02, 2024, with allotment on September 03, refund initiation on September 04, and listing on September 05, 2024.

 

Travels & Rentals IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on August 29, 2024, close on September 02, 2024, and offer a total issue size of 30,60,000 Shares (aggregating up to Rs.12.24 Cr) comprising a wholly fresh issue size.

Travels & Rentals IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (3000 Shares) amounting to Rs.1,20,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (6000 Shares) amounting to Rs.2,40,000.

 

Travels & Rentals IPO Reservation

Promoters And Management of Travels & Rentals Ltd.

• Mr. Devendra Bharat Parekh

• Mrs. Karuna Parekh

• Mrs. Anupama Singhi

• Mr. Tushar Singhi

IPO Lead Managers

• Finshore Management Services Ltd.

Dividend Policy

The company has not paid any dividends in the last three FYs.

Conclusion

The company has experienced negative cash flow in operating, financing, and investing activities in the last fiscal years. To achieve its goals, the company is currently launching an IPO for the general public. We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable data about the company's insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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