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
