LGT BUSINESS CONNEXTIONS IPO

Quick Overview

Key Timelines for Investors

• Opening Date: 19 Aug 2025
• Closing Date: 21 Aug 2025
• UPI Payment Deadline: 21 Aug 2025 (5 PM)
• Allotment Announcement: 22 Aug 2025
• Refund Processing: 25 Aug 2025
• Demat Credit: 25 Aug 2025
• Stock Market Listing: 26 Aug 2025
• Mandate Validity End: 05 Sep 2025
• Anchor Investor Lock-in Release (50%): 21 Sep 2025
• Anchor Investor Lock-in Release (Remaining): 20 Nov 2025

*Dates may be revised as per official updates.

Insight into LGT Business Connextions

Founded in 2016, LGT Business Connextions operates in the dynamic travel and tourism service aggregation sector. The company was established by Wilfred Selvaraj, Padma Wilfred, Aruldas Arulandu, and Singaravelou with a vision to streamline travel experiences. LGT Business Connextions specializes in acting as a crucial intermediary, connecting customers with a broad spectrum of travel services, including hotels, airlines, car rentals, and cruise services. This is achieved through a combination of direct partnerships and collaborations with third-party aggregators, creating a comprehensive travel ecosystem.

The company’s service portfolio is diverse, catering to both corporate clients and individual travellers. Key offerings include MICE (Meetings, Incentives, Conferences, and Exhibitions) services, comprehensive accommodation bookings, domestic and international ticketing, efficient visa processing, and meticulously customized tour packages. LGT Business Connextions holds IATA accreditation, a testament to its capability in handling domestic and international air ticketing services with reliability and adherence to industry standards. Furthermore, to enhance its service delivery, the company operates leased accommodations in key tourist hubs like Chennai and Thiruvananthapuram. The core of their business model revolves around earning commissions by aggregating various services across the travel industry, positioning them as a versatile and integral player in the travel value chain.

Details of the Capital Raise

The total issue size for LGT Business Connextions IPO is ₹28.09 crores. This capital raise comprises both a fresh issue of equity shares amounting to ₹23.87 crores and an Offer for Sale (OFS) of ₹2.81 crores. The fresh issue component signifies new capital flowing into the company, earmarked for strategic growth and operational enhancements. The Offer for Sale component, on the other hand, allows existing shareholders to divest a portion of their holdings, providing liquidity without directly infusing capital into the company’s operations. This combination reflects a balanced approach to fundraising, addressing both the company’s future expansion needs and providing an exit opportunity for early investors.

Strategic Utilization of Capital

The funds generated from the fresh issue component of the IPO are strategically allocated to fuel LGT Business Connextions’ future growth and operational efficiency. A significant portion, 43.74% amounting to ₹10.44 crores, is dedicated to capital expenditure. This allocation is crucial for investing in infrastructure, technology, or other assets that can bolster the company’s service delivery and expand its operational footprint. Another substantial share, 32.26% or ₹7.70 crores, is allocated towards meeting working capital requirements. This ensures the company has sufficient liquidity to manage day-to-day operations, cover immediate expenses, and sustain its business rhythm without financial strain. Lastly, 15.88% of the fresh issue, equivalent to ₹3.79 crores, is reserved for general corporate purposes. This flexible allocation allows the management to address various strategic needs, unforeseen contingencies, or pursue new opportunities as they arise, ensuring the company remains agile and adaptable in a competitive market.

Distinctive Business Strengths

• Robust Organisational Foundation and Expert Leadership: LGT Business Connextions benefits from a stable organizational structure complemented by a highly experienced management team. This combination fosters effective decision-making, strategic guidance, and efficient execution of business plans, contributing to the company’s overall resilience and growth trajectory.
• Comprehensive Service Portfolio: The company offers a diverse range of travel and tourism services, encompassing MICE, individual tour packages, ticketing, visa processing, and accommodation. This wide array of offerings caters to varied customer segments, reducing dependency on a single service line and enhancing revenue streams.
• Inherently Scalable Business Model: Operating as an aggregator, LGT Business Connextions possesses a business model that is inherently scalable. The platform can efficiently handle an increasing volume of transactions and service requests without a proportionate increase in fixed costs, allowing for significant growth potential with optimized resource utilization.
• Streamlined Operational Framework: The company’s operations are characterized by a smooth and efficient flow, indicative of well-established processes and effective integration of partnerships. This operational excellence ensures timely service delivery, customer satisfaction, and optimal resource management across its various service offerings.

Key Risk Considerations for Investors

• High Revenue Concentration: A significant portion, nearly 100%, of the company’s revenue is derived from just two primary services: MICE packages and hotel bookings. This high concentration makes LGT Business Connextions vulnerable to adverse market conditions or shifts in demand within these specific segments, potentially impacting overall financial performance.
• Geographic Sales Dependency: The company’s sales are predominantly concentrated in Southern India, leading to a regional dependency. Economic downturns, natural disasters, or competitive pressures specifically affecting the Southern Indian travel market could disproportionately impact the company’s business outcomes.
• Reliance on Top Customers: A substantial portion of the company’s revenue originates from its top 10 customers. Furthermore, contractual agreements with these key clients are limited, especially beyond accommodation services. This reliance introduces a risk of revenue volatility if any of these major customers scale back their business or choose alternative service providers.
• Dependence on External Vendors and Suppliers: LGT Business Connextions heavily relies on external vendors and travel suppliers to deliver its services. The absence of long-term contracts with many of these partners means that the company faces potential risks related to service quality, pricing fluctuations, and availability, which could affect its ability to deliver consistent services.
• Leased Business Premises: All of the company’s business premises are rented rather than owned. This arrangement introduces potential operational disruption risks, such as lease non-renewal, increased rental costs, or relocation challenges, which could impact business continuity and overheads.
• Working Capital Requirements and Historical Cash Flows: The company has high working capital requirements, and historical data indicates previous negative cash flows. This financial characteristic suggests that LGT Business Connextions may require ongoing capital infusions to manage its operations effectively, and any strain on working capital could hinder its growth prospects.

Latest Subscription Data

Subscription statistics based on the latest available information as of 5:00 PM on August 21, 2025:

*GMP figures are unofficial and may vary; exchange data is more reliable.

How to Apply

Investors can participate in this IPO via the official Dhan Kirti IPO platform before the subscription closes.