LGT Business Connextions IPO: ₹28 Cr IPO – From Holiday Packages to Public Markets
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 IPO at ₹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 the B2B 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.
The business is asset-light but margin-thin. Think more Flipkart aggregator than Taj Hotels.
4. Financials Overview
Source table
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.”
