1. At a Glance
Here comes another SME IPO that wants you to fund its “holiday dreams.” LGT Business Connextions, a Chennai-based travel services aggregator, is tapping the BSE SME platform with a₹28.09 Cr fixed-price IPOat₹107/share. Minimum retail ticket? ₹2.57 lakh. Yes, you read that right — one “holiday” with them and your wallet goes missing. Promoters Wilfred & Padma Wilfred are diluting their near-100% control down to ~72%.
2. Introduction
SME IPO season is like Diwali crackers — some dazzle, some fizzle, and most leave you with smoke. LGT Business Connextions Ltd (LBCL), incorporated in 2016, has positioned itself as a“service aggregator” in travel & tourism. That means they don’t own fleets or hotels; they connect you to the folks who do, bundle it with some visa stamping and hotel bookings, and pocket commissions.
The company is targeting a post-issue market cap of ₹100 Cr, a figure that makes it a toddler in public market terms. But like most SME issuers, LGT is pitching high growth in a fragmented, brutally competitive industry. The “objects of issue” reveal the truth:₹10.44 Cr for capex, ₹7.7 Cr for working capital, ₹3.8 Cr for corporate expenses.Translation: more offices, more salespeople, and probably a bigger booth at travel fairs.
3. Business Model (WTF Do They Even Do?)
The company’s pitch is: “We make travel hassle-free.” Reality: they operate in theB2B travel aggregation segment, stitching together hotels, airlines, car rentals, cruises, and custom tours.
Key revenue streams:
- MICE Travel: Meetings, Incentives, Conferences, Exhibitions — basically managing your boss’s annual offsite at Goa where half the employees drown in PowerPoints, the other half in alcohol.
- Accommodation: Tie-ups with local and global hotels. They even lease some flats in Chennai & Thiruvananthapuram.
- Ticketing
- & Visa: Through IATA accreditation, they earn small commissions on ticketing. Visa services are bolt-on revenues.
- Customised Packages: Tours, trade fairs, sightseeing arrangements.
The business isasset-lightbutmargin-thin. Think more Flipkart aggregator than Taj Hotels.
4. Financials Overview
| Metric | FY25 | FY24 | FY23 | YoY % | 2Y CAGR % |
|---|---|---|---|---|---|
| Revenue | ₹100.8 Cr | ₹89.5 Cr | ₹61.2 Cr | +13% | +28% |
| EBITDA | ₹7.7 Cr | ₹5.3 Cr | ₹4.0 Cr | +45% | +37% |
| PAT | ₹5.2 Cr | ₹3.6 Cr | ₹3.0 Cr | +44% | +34% |
| Net Worth | ₹12.5 Cr | ₹7.2 Cr | ₹3.6 Cr | +72% | — |
| EPS (₹) | 7.44 | 5.17 | 4.24 | +44% | — |
👉 Commentary: The company is growing, but absolute profits (₹5.2 Cr) are pocket change compared to the IPO size. Margins are wafer-thin (PAT margin ~5%). For a travel aggregator, it’s “volume or vanish.”
5. Valuation (Fair Value Range Only)
IPO Price = ₹107/share.Post-issue EPS = 5.56.Post-issue P/E = ~19x.
Peers in fragmented travel space (like Easy Trip Planners) trade around 25–30x.
🎯Fair Value Range (Educational Only): 15–20x earnings = ₹83–₹111/share.So the IPO is at the upper end of “fair” but leaves little room for error.
6. What’s Cooking – News, Triggers, Drama
- Travel Bounce-Back: Post-COVID, Indians are travelling like there’s
