LGT Business IPO GMP & Subscription status

Core Business & Overview

LGT Business Connextions Limited, established in 2016, functions as a service aggregator in the travel and tourism industry. It consolidates offerings from a variety of third-party providers—such as hotels, airlines, car rental services, cruise operators, and more—to deliver end-to-end travel solutions to both corporate and individual clients. These services include ticketing (with IATA accreditation), MICE (Meetings, Incentives, Conferences & Exhibitions) packages, cruise bookings, transit and local sightseeing arrangements, visa processing, and customized travel plans.

The company also operates leased accommodations in Chennai and Thiruvananthapuram to support its hotel and lodging services.

Strengths

1. Comprehensive Service Offering
   The company’s ability to “cross-sell services under one roof”—spanning everything from visa assistance to event management—sets it apart in a crowded market.
2. Scalable Business Model & Operational Efficiency
   LGT Business operates a scalable structure, efficiently leveraging resources to grow and serve diverse customer needs. Its organizational stability and experienced management team add to its credibility.

Potential Risks

1. Revenue Concentration in Limited Services
   Nearly 100% of the company’s revenue comes from just two segments—MICE packages and hotel bookings—making it highly vulnerable to fluctuations in these areas.
2. Geographic Concentration
   Operations are heavily concentrated in Southern India, exposing the company to regional risks such as local economic downturns or regulatory issues.
3. Dependence on Few Key Clients & Lack of Long-Term Agreements
   A large share of business comes from the top 10 clients, and the company hasn’t entered formal long-term contracts (except for accommodation services), which can jeopardize business continuity if client relationships shift.
4. Reliance on External Vendors Without Long-Term Ties
   The firm depends on third-party travel suppliers and vendors without long-term agreements, risking service quality disruptions or cost pressures.
5. Leased Business Premises
   All operational facilities—including offices and lodging—are rented, introducing exposure to lease-related risks and potential instability.
6. Financial Vulnerabilities
   The company has incurred indebtedness and reported negative cash flows in prior years, which could strain ongoing operations and hamper expansions.
7. Litigation Exposure
   Group entities are involved in pending legal cases, which could lead to financial liabilities or reputational damage

Financial Performance Overview (₹ in Crore)

Revenue

• FY 2023 → ₹60.99 Cr
• FY 2024 → ₹89.36 Cr
• FY 2025 → ₹100.43 Cr

Revenue has grown strongly—up 47% in FY24 and 12% in FY25. This shows the company is expanding its business steadily, though growth slowed in FY25 compared to FY24.

Profit

• FY 2023 → ₹2.97 Cr
• FY 2024 → ₹3.63 Cr
• FY 2025 → ₹5.21 Cr

Profit rose consistently. In FY25, profit jumped by 43% from the previous year, meaning the company is controlling costs better and becoming more efficient.

Total Assets

• FY 2023 → ₹8.69 Cr
• FY 2024 → ₹14.93 Cr
• FY 2025 → ₹27.17 Cr

Assets more than tripled in two years, showing aggressive expansion, possibly due to IPO funds and reinvested profits. A higher asset base supports future growth.

✅ Pros

• Diversified travel services under one roof (MICE, hotels, ticketing, visa).
• Consistent revenue and profit growth with strong FY25 performance.
• IPO proceeds to boost capital expenditure and working capital.
• Experienced management with scalable business model.
• Expanding asset base supports future growth.

❌ Cons

• High revenue concentration in MICE and hotel bookings.
• Operations limited mainly to South India.
• Dependence on top clients and external vendors without long-term contracts.
• Entire business run from leased premises.
• Past instances of negative cash flows and existing indebtedness.
• Pending litigations could affect reputation/finances.