The IPO of Wise Travel India Limited witnessed a remarkable response to the final day subscription, with the issue being subscribed a total of 148.45 times. This impressive figure reflects strong investor confidence and interest. It marks a significant milestone in the company’s financial journey.
Wise Travel India Limited IPO – Fundamental Analysis:
Wise Travel India Limited’s revenue saw a dramatic surge from ₹4,226.80 million in 2021 to ₹24,959.87 million in 2023, indicating rapid growth and strong market demand. Investor confidence is evident as equity increased from ₹2,456.48 million to ₹4,062.21 million in the same period.
The company’s profit rose significantly from ₹177.59 million in 2021 to ₹1,026.87 million in 2023, reflecting efficient operations and increased earnings. Return on Net Worth improved markedly from 7.23% to 25.28%, showing enhanced shareholder value. Assets more than doubled, but liabilities also grew, suggesting strategic borrowing for growth. The Net Asset Value per share increased from ₹15.14 to ₹23.39, and Diluted Earnings Per Share rose from ₹1.09 to ₹5.91.
Wise Travel India IPO Risks And Challenges:
Wise Travel India is confronting several challenges that threaten its financial health, including ongoing legal issues, disruptions from lockdowns, and trademark registration hurdles. Effective management is crucial to minimize these risks and ensure the company’s continued stability. These challenges require strategic handling to avoid detrimental effects on the company’s financial and operational performance.
The company is embroiled in various legal disputes, including civil, criminal, and labor matters, with potential adverse outcomes leading to financial penalties and reputational harm. Additionally, PT WTI. Trading & Mining Ventures in Indonesia, a subsidiary, has encountered disruptions due to lockdowns, risking operational difficulties and regulatory fines. Simultaneously, the company’s efforts to secure trademarks under the Trade Marks Act are essential but risky, as delays or issues in registration could adversely affect business operations and outcomes.
