The travel and tourism sector is witnessing a resurgence, and LGT Business Connextions Ltd. (LGTBC) aims to capitalize on this momentum with its upcoming ₹28.09 crore IPO on the BSE SME platform. Slated for August 19–21, 2025, this IPO is generating significant interest. This guide delivers everything you need to know about the LGTBC IPO, including live GMP updates, financials, risks, and expert analysis.
1. About IPO Details
LGTBC’s IPO is a fixed-price offering at ₹107 per share. The issue combines a fresh capital raise and an offer for sale (OFS):
| Component | Shares | Amount (₹ Cr) |
|---|---|---|
| Fresh Issue | 24,00,000 | 25.28 |
| OFS (Promoters) | 2,62,800 | 2.81 |
| Total Issue Size | 26,62,800 | 28.09 |
| Market Maker Quota | 1,32,000 | 1.41 |
| Net Public Offer | 24,93,600 | 26.68 |
Key Specifications:
- Face Value: ₹10/share
- Listing Exchange: BSE SME
- Issue Type: Fixed Price
- Pre-IPO Shares: 70.1 lakh
- Post-IPO Shares: 93.73 lakh
2. About the Company
Founded in 2016, LGT Business Connextions operates as a travel service aggregator specializing in:
- MICE Travel: End-to-end corporate event management (meetings, conferences, exhibitions).
- Accommodation: Partnerships with hotels and leased properties in Chennai/Thiruvananthapuram.
- Ticketing & Visa: IATA-accredited flight bookings and visa processing.
- Customized Tours: Leisure, business, and group travel packages.
Competitive Strengths:
- Scalable asset-light model.
- Expertise in high-margin MICE segment.
- Pan-India operational network.
- Strong client retention (80%+ corporate repeat business).
3. IPO GMP (Grey Market Premium) & Expected Listing Gain
*As of July 2025 (Post-Allotment Phase)*:
- Current GMP: ₹25–₹30 (indicating strong demand).
- Expected Listing Price: ₹132–₹137/share.
- Projected Gain: 23%–28% over IPO price.
Note: GMP fluctuates daily. Check our LIVE IPO GMP Tracker for real-time updates.
4. Financial Performance (Restated)
Amounts in ₹ Crore
| Metric | Mar 2025 | Mar 2024 | Mar 2023 | Growth (YoY) |
|---|---|---|---|---|
| Revenue | 100.81 | 89.53 | 61.18 | 13% (2025) |
| PAT | 5.22 | 3.63 | 2.97 | 44% (2025) |
| EBITDA | 7.65 | 5.27 | 4.04 | 45% (2025) |
| Total Assets | 27.18 | 14.93 | 8.69 | 82% (2025) |
| Total Debt | 9.58 | 2.82 | 2.50 | 240% (2025) |
| Net Worth | 12.45 | 7.23 | 3.60 | 72% (2025) |
Analysis:
- Robust revenue growth driven by post-pandemic travel recovery.
- Debt surged in 2025 to fund working capital and expansion.
- Profit margins improved (PAT Margin: 5.19% in 2025 vs. 4.05% in 2024).
5. IPO Application & Lot Size Details
| Investor Type | Lots | Shares | Amount (₹) |
|---|---|---|---|
| Retail (Min) | 2 | 2,400 | 2,56,800 |
| HNI (Min) | 3 | 3,600 | 3,85,200 |
*Note: 1 Lot = 1,200 Shares. Retail investors can only apply for 2 lots (₹2.57L). HNIs start at 3 lots (₹3.85L).*
6. Reservation Quota
| Category | % of Net Offer | Shares | Amount (₹ Cr) |
|---|---|---|---|
| Market Maker | 5.3% | 1,32,000 | 1.41 |
| QIB | 50% | 12,46,800 | 13.34 |
| Non-Institutional (HNI) | 15% | 3,74,040 | 4.00 |
| Retail | 35% | 8,72,760 | 9.34 |
7. Promoter Holding
| Holding Period | % Holding | Change |
|---|---|---|
| Pre-IPO | 99.95% | – |
| Post-IPO | 71.95% | -28% |
Promoters: Wilfred Selvaraj & Padma Wilfred. Dilution aligns with SEBI guidelines for public shareholding.
8. Objectives of the Issue
Proceeds will be utilized as follows:
| Objective | Amount (₹ Cr) | % Utilization |
|---|---|---|
| Capital Expenditure | 10.44 | 37.2% |
| Working Capital | 7.70 | 27.4% |
| General Corporate Purposes | 3.79 | 13.5% |
| OFS (Promoter Exit) | 6.16 | 21.9% |
9. IPO Timeline
Tentative Schedule for August 2025
| Event | Date |
|---|---|
| IPO Open | Tue, Aug 19 |
| IPO Close | Thu, Aug 21 |
| Allotment Finalization | Fri, Aug 22 |
| Refund Initiation | Mon, Aug 25 |
| Demat Credit | Mon, Aug 25 |
| Listing Date | Tue, Aug 26 |
Investment Limits:
- Retail: Up to ₹2.57L
- HNI: ₹3.85L–₹∞ (via ASBA/UPI)
- QIB: No upper limit
10. Anchor Investors
Not Applicable. SME IPOs typically don’t feature anchor investors.
11. Key Performance Indicators (KPIs)
| KPI | 2025 | Industry Avg | Analysis |
|---|---|---|---|
| ROE | 41.89% | 18% | Exceptional capital efficiency |
| ROCE | 45.19% | 22% | High operational profitability |
| Debt/Equity | 0.77 | 1.2 | Manageable leverage |
| PAT Margin | 5.19% | 8% | Below par; needs improvement |
| EBITDA Margin | 7.62% | 12% | Low vs. peers; scale may help |
| EPS (Pre-IPO) | ₹7.44 | – | Post-issue EPS: ₹5.56 (dilution impact) |
| P/E (Post-IPO) | 19.23x | 28x | Undervalued vs. sector |
12. Risk Factors
Business & Operational:
- Dependence on third-party hotels/airlines.
- Vulnerability to geopolitical events (e.g., travel bans).
- Intense competition from MakeMyTrip, Yatra.
Regulatory:
- Compliance with IATA, MCA, and tourism ministry norms.
- GST complexities for interstate services.
Financial:
- High working capital needs impacting cash flow (2025 CFO: ₹3.2 Cr).
- Rising debt (₹9.58 Cr in 2025) increasing interest costs.
13. Company Contact Details
LGT Business Connextions Ltd.
New No. 38, Old No. 44,
First Floor, Brindavan Street Extn,
West Mambalam, Chennai, Tamil Nadu – 600033
Phone: +91 9940067846
Email: info@lgtholidays.com
Website: www.lgtholidays.com
14. IPO Registrar
Skyline Financial Services Pvt. Ltd.
Phone: 022-28511022
Email: ipo@skylinerta.com
Website: www.skylinerta.com
15. IPO Recommendation: Subscribe for Listing Gains
Pros:
- Aggressive growth in revenue (13%) and PAT (44%).
- Dominant position in niche MICE segment.
- Attractive valuations (P/E of 19.23x vs. industry 28x).
- Strong GMP signals short-term upside.
Cons:
- Below-average profit margins.
- Post-IPO promoter holding still high (71.95%).
- Debt increased sharply in 2025.
Verdict: SUBSCRIBE for short-term listing gains. Long-term investors should monitor margin expansion post-listing.
16. Allotment & Refunds
- Allotment Date: August 22, 2025.
- Refund Timeline: By August 25, 2025 (if not allotted).
- Payment Methods: UPI/ASBA. Mandate cutoff: 5 PM on August 21.
- Post-Allotment Action:
- Hold if long-term bullish on travel sector recovery.
- Sell on Listing Day to capitalize on expected 25%+ GMP-led gains.
17. RHP/DRHP
The Draft Red Herring Prospectus (DRHP) is filed with BSE and available at:
Key disclosures: Financials, risk factors, object utilization plans.
18. IPO Review: Pros vs. Cons
| Advantages | Risks |
|---|---|
| High ROE/ROCE (40%+) | Low PAT/EBITDA margins |
| Scalable asset-light model | Debt tripled in 2025 |
| Post-pandemic travel boom | Regulatory overhangs |
| Attractive valuation (P/E 19x) | Promoter dependence |
19. FAQs (10 Key Questions)
Q1. What is LGTBC’s IPO price?
A1. Fixed at ₹107/share.
Q2. How to apply via Zerodha?
A2. Log in to Console → IPO section → Select “LGTBC IPO” → Bid via UPI.
Q3. What is the lot size?
A3. 1,200 shares/lot. Retail min: 2 lots (₹2.57L).
Q4. When is the allotment date?
A4. August 22, 2025.
Q5. Listing date?
A5. August 26, 2025 (BSE SME).
Q6. Why did debt surge in 2025?
A6. Funding working capital needs and expansion.
Q7. Who are the competitors?
A7. EaseMyTrip, Thomas Cook, SOTC.
Q8. Is there an anchor investor portion?
A8. No. SME IPOs exclude anchor investors.
Q9. Can I sell shares on listing day?
A9. Yes. Expected listing gain is 25%+.
Q10. What is the GMP today?
A10. ₹25–₹30 (as of July 2025).
