Wise Travel India Limited IPO  - Complete Overview

Established in 2009, Wise Travel India Limited is a transportation company that specialises in providing car rentals and transport services across 130 cities in India. Offering a diverse range of services, including car rentals, employee transportation, and cutting-edge mobility solutions, WTI caters to various needs in the transport sector.

WTI stands out by providing a variety of rental cars, including executive cars, luxury cars, coaches, SUVs, and sedans. Operating in major cities such as Delhi NCR, Mumbai, Pune, Hyderabad, Bangalore, Chennai, and Kolkata, the company has built a robust client base that includes prominent names like Nokia, Amazon, Microsoft, and Coca-Cola.

With a workforce of 784 employees, including directors, as of October 31, 2023, Wise Travel India Limited is committed to offering online car rental and taxi booking services with a focus on corporate people transportation. The company aims to cover the entire value chain through services like car rental, employee transportation, car leasing, coach rentals, airport counters, and innovative technology solutions.

Wise Travel India Limited IPO Overview

Wise Travel India Limited IPO date is slated to be open for subscription from February 12, 2024, to February 14, 2024. This NSE SME IPO follows a Book Built Issue IPO.

Wise Travel India Limited IPO price is fixed at Rs.140 - Rs.147 per share. 

The total issue size of this IPO amounts to Rs.94.68 CR. The company has reserved 50% for institutional investors, 15% for non-institutional investors, and 35% for retail investors. 

Wise Travel India Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	12 February 2024
IPO Closing Date	14 February 2024
IPO Allotment Date	15 February 2024
Refund initiation	16 February 2024
IPO Listing Date	19 February 2024

 

Wise Travel India Limited IPO Details

IPO opening & closing date	12 February to 14 February2024
Face value	Rs.10 per share
Issue Price	Rs.140 - 147  per share
Lot Size	1000  Shares
Price of 1 lot	Rs.147,000
Total Issue Size	6,441,000 shares (aggregating up to Rs.94.68 Cr)
Offer for sale	shares (aggregating up to Rs. Cr)
Fresh issue	6,441,000 shares (aggregating up to Rs.94.68 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Beetal Financial & Computer Services (P) Limited

Wise Travel India Limited IPO Lot Details

Application	Lot	Shares	Amount
Minimum Lot Investment (Retail)	1 lot	1,000	Rs. 147,000
Maximum Lot Investment (Retail)	1 lot	1,000	Rs. 147,000
Minimum Lot Investment (HNI)	2 lot	2,000	RS. 294,000

 

Wise Travel India Limited IPO Reservation

QIB Shares Offered	Maximum 50%
Retail Shares Offered	Minimum 35%
Other Shares Offered	Minimum 15%

Company Financial

(Amount in Lakhs)

Period	Sep 30  FY 23	Mar 31  FY 23	Mar 31  FY 22
Total Assets	13,427.82	12,161.21	6,002.64
Total Revenue	19,016.53	24,997.04	8,970.00
PAT	1,132.91	1,029.36	377.74
Net worth	5,194.36	4,061.45	2,832.10
Reserve & Surplus	3,457.28	3,745.62	2,537.10
Total Borrowings	1,627.55	1,674.50	216.32

 Revenue  Distribution Segment Wise   

( in % age)

Particulars	Sep 30  FY 23	Mar 31  FY 23	Mar 31  FY 22
CRD (Spot Rental)	5,004.16	6,327.76	3,132.18
ETS (Employee Transportation)	7,011.24	10,302.82	2,196.94
MSP (Manage Service Provider)	3,565.71	2,776.29	559.50
Projects (Long term Rentals)	1,957.04	2,941.98	2,021.81
Airport (Airport Counters)	1,450.35	2,582.33	951.99
Other (Individual, Consultancy)	-	28.70	-
Total	18,988.50	24,959.87	8,862.41

 

 

 

Revenue By Operations

(Amount in Lakhs)

Particulars	Sep 30 FY 23	Mar 31  FY 23	Mar 31  FY 22
Revenue from operations	18,988.50	24,959.87	8,862.41
Other Income	28.03	37.16	107.59
Total Revenue	19,016.53	24,997.04	8,970.00

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• To Meet Working Capital Requirement

• General Corporate Purpose

• To Meet the Issue Expenses

 

Promoters and Management of Wise Travel India Limited IPO

1. Mr. Ashok Vashist.

2. Ms. Hema Bisht.

3. Mr. Vivek Laroia.

Pre-issue Promoter Shareholding	95.63%
Post-issue Promoter Shareholding	69.76%

Wise Travel India Limited IPO Lead Managers

• Share India Capital Services Private Limited

 

Peers of Wise Travel India Limited IPO

Name of the company	Face value (Rs. per share)	P/ E	EPS (Basic) (Rs.)
Wise Travel India Limited	10.00	24.81	5.93
Shree OSFM E-Mobility Limited	10.00	22.11	2.94
Mahindra Logistics Limited	10.00	44.51	8.97

Evaluation

The IPO is priced within the range of Rs. Rs.140 - 147 per share.

 

Evaluation of P/E Ratio:

- Considering the FY23 EPS of Rs 5.93 from the last year, the resulting P/E ratio is 24.78x.

- Taking into account the weighted EPS of Rs 1.55 for the last three years, the P/E ratio amounts to 94.83x.

    

Comparative Analysis with Listed Peers:

- The industry's average P/E is 211x.

As a result, the IPO price range, with a P/E ratio ranging from 24.78x to 94.83x, seems highly undervalued in comparison to the industry average of 211x.

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

 

IPO's Strengths

• Seasoned leaders and management bring valuable expertise and guidance.

• Commitment to delivering high-quality services ensures customer satisfaction and trust.

•  Long-standing connections with current clients contribute to stability and potential business growth.

• A business model capable of expanding efficiently, allowing for growth and adaptability.

 

IPO's Weaknesses

• Historical and potential future negative cash flows from operating activities.

• Lack of audited financials for the subsidiary, PT. WTI Trading & Mining Ventures.

• Absence of a registered trademark exposes the company to potential misuse.

• Non-compliance with statutory provisions of the Companies Act and CSR obligations. Possible penalties affecting financial position.

• Intense competition in the cab service industry may affect pricing and reduce market share.

• Continued majority control by promoters and Promoter Group may impact shareholder decisions.

• Holding a trade licence for food items in Bengaluru instead of cab services poses regulatory risk.
  
  

IPO GMP Today

The GMP of Wise Travel India Limited IPO is Rs.71.

 

 

Conclusion

Wise Travel India Limited IPO offers investors exposure to the growing Indian transportation sector. The company, established in 2009, is a key player in car rentals and transportation services across 130 cities.

With the IPO scheduled from February 12 to February 14, 2024, at Rs.140 - Rs.147 per share, and a total issue size of Rs.94.68 CR, Wise Travel India Limited boasts a robust financial standing, with total assets of Rs.13,427.82 Lakhs and revenue of Rs.19,016.53 Lakhs as of September 30, 2023.

Investors are advised to carefully assess financials and consider both strengths and weaknesses before making investment decisions. Stay informed about market updates for a well-rounded investment approach.

 

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.

 

 

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