Travels & Rentals IPO Review
Neutral40-40 · SME
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Analyst Verdict
Travels & Rentals IPO
Neutral
IPO at a Glance
Price Band
40-40
Issue Size
12cr
Opens
2024-08-27
Closes
2024-08-31
Listing
2024-09-03
Category
SME
Key Strengths
✓The company has an established track record of 30+ years which indicates the company’s ability to weather economic and business cycles. The promoters have over 3 decades of experience in diverse industries.
✓The company’s business model is order-driven and comprises optimum resource utilization, enabling it to achieve consequent economies of scale.
✓The company has been a franchisee of Lufthansa City Center International GmbH (LCCI) since 2010 and has been granted the right to operate under “Business Plus Lufthansa City Center” in India since 2013. LCCI has a worldwide travel agency franchisee network in around 580 locations in 105 countries.
✓Recently this year, The company has entered into a sales and marketing agreement with Group Voyagers Inc. for the sale of Globus family of brands travel products in India.
Key Risks
⚠The travel market is intensely competitive. The company’s success depends on its ability to compete effectively against numerous established and emerging competitors, including other online travel agencies, traditional offline travel companies, and travel research companies, both in India and outside India.
⚠The company had negative cash flow in recent fiscals. Sustained negative cash flow could adversely impact its business.
⚠The Group Company has incurred losses in the past and may incur losses in the future.
⚠The company generally does business with its customers on a travel package basis and does not enter into long-term contracts with any of them.
⚠The company’s inability or failure to recognize, respond to, and effectively manage the accelerated impact of social media could materially adversely affect the business.
Frequently Asked Questions
Should I apply for Travels & Rentals IPO?
Based on our analysis, our rating for Travels & Rentals IPO is: Neutral. Review the full analysis including strengths, risks, and financials on CheckIPO before making a decision.
What are the key risks of Travels & Rentals IPO?
The travel market is intensely competitive. The company’s success depends on its ability to compete effectively against numerous established and emerging competitors, including other online travel agencies, traditional offline travel companies, and travel research companies, both in India and outside India. The company had negative cash flow in recent fiscals. Sustained negative cash flow could ad
What are the strengths of Travels & Rentals IPO?
The company has an established track record of 30+ years which indicates the company’s ability to weather economic and business cycles. The promoters have over 3 decades of experience in diverse industries. The company’s business model is order-driven and comprises optimum resource utilization, enabling it to achieve consequent economies of scale. The company has been a franchisee of Lufthansa Cit
What is the price band of Travels & Rentals IPO?
The price band for Travels & Rentals IPO is 40-40. The IPO has closed.
Full Analysis Available
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