HELLOJI HOLIDAYS LIMITED IPO Explain

Helloji Holidays IPO Overview

Delhi-based travel & tourism company raising ₹10.96 cr via 100% fresh issue of 9.29L shares. Price: ₹110-118. Lot: 1,200 shares (₹2.83L min, 2 lots). Funds for tech platform (₹2.33 cr), working capital (₹4.96 cr), corporate purposes.

Founded 2005-2018 (discrepancy).

Services: Air ticketing (53%), hotels (45%), packages (19%), MICE, ancillaries. B2B 57%, B2C 43%. Delhi-based, limited geographic presence. FY25: ₹28.18 cr revenue (+8%), ₹2.10 cr PAT (+16%).

Lead: Khambatta Securities. Hyper-competitive travel OTA space, limited scale, geographic concentration. Competes with MakeMyTrip, EaseMyTrip, Yatra, Booking.com, Airbnb.

IPO DETAILED INFORMATION

Issue Details

Parameter	Details
IPO Type	SME
IPO Open Date	2 December 2025 (Monday)
IPO Close Date	4 December 2025 (Wednesday)
Allotment Date	5 December 2025 (Thursday) – Expected
Credit to Demat	8 December 2025 (Sunday) – Expected
Refund Initiation	TBD
Listing Date	9 December 2025 (Monday) – Tentative
Price Band	₹110 – ₹118 per share
Face Value	₹10 per share
Lot Size	1,200 shares (per some sources; 2,400 per others – discrepancy)
Min Investment (Retail)	₹2,83,200 (2,400 shares / 2 lots at upper band)
sHNI Investment	₹4,24,800 (3 lots / 3,600 shares) minimum
Issue Size	₹10.96 crore total (at upper band) – ₹10.39 cr per some sources
Fresh Issue	₹10.96 crore (100% fresh issue)
Offer for Sale (OFS)	NIL
Total Shares Offered	9,28,800 equity shares (9.29 lakh)
Listing	BSE SME (Emerge Platform)
Post-Issue Market Cap	~₹40-41 crore (at upper price band)
P/E Ratio	~14.07x (Pre-issue basis)
EPS	₹8.39 (Pre-issue)
Expected Listing Price	₹118-129 (0-9% gains expected)

Issue Break-up

Category	Allocation	Shares
QIB (Qualified Institutional Buyers)	4,64,400 shares	50%
NII (Non-Institutional Investors)	1,39,200 shares	15%
Retail Individual Investors	3,25,200 shares	35%
Market Maker (portion)	48,000 shares	~5%

Note: Standard allocation pattern (50% QIB). No anchor portion disclosed in available sources.

Objects of the Issue (Fund Utilization)

Fresh Issue Proceeds (₹10.96 crore gross / ~₹8.29 cr net after issue expenses ₹2.67 cr) will be used for:

Technology Platform Enhancement – ₹2.33 crore (28.1% of net proceeds)
- Upgrading online booking platform and mobile app
- CRM and customer engagement tools
- Backend systems for inventory management
- Integration with global distribution systems (GDS)
- Enhancing user experience and interface
- Analytics and business intelligence tools
Funding Working Capital Requirements – ₹4.96 crore (59.8% of net proceeds)
- Day-to-day operations support
- Vendor advance payments (airlines, hotels)
- Trade receivables management
- High working capital intensity typical of travel agency business
General Corporate Purposes – ₹1.00 crore (12.1% of net proceeds)
- Marketing, brand building, contingencies

Strategic Focus:

Heavy working capital focus (59.8%) indicates cash flow pressure typical of travel industry
Technology investment (28.1%) to compete with digital-first OTAs
No major capex or infrastructure investment – asset-light model
Largely operational strengthening vs aggressive growth

Note: This is a 100% fresh issue with no OFS. All proceeds go to the company.

Lead Managers & Registrar

Book Running Lead Manager (BRLM):

Khambatta Securities Limited
Contact details: TBD
Track Record: Active in SME IPO space

Registrar:

Maashitla Securities Private Limited
Address: 451, Krishna Apra Business Square, Netaji Subhash Place, Pitampura, Delhi – 110034
Phone: +91-11-45121795-96
Email: [email protected]
Website: https://maashitla.com/allotment-status/public-issues

Market Maker:

Not disclosed

Promoters & Management

Key Promoters (4 Promoters):

Mr. Hitesh Kumar Singla – Managing Director (appointed August 14, 2025)
- Leading the company and IPO journey
Mr. Nikhil Singla – Director and Chief Financial Officer (CFO appointed August 14, 2025)
- Financial management and operations
Mr. Nitin Dixit – Promoter
Mr. Anil Kumar Sharma – Promoter

Company History:

Incorporation date discrepancy: Some sources say 2005, official DRHP shows August 1, 2018
Operating History: Likely operating as proprietorship/partnership before incorporation as limited company
Recent Management Appointments: MD and CFO appointed in August 2025 (just before IPO filing in September 2025) – red flag
Company Secretary: Appointed August 27, 2025 (just before IPO)
Pre-IPO Equity: 25,00,000 shares (96% with promoters)
Post-IPO: Total 34,28,800 shares (promoters 70%)

Company Contact:

Registered Office: WA-89, Third Floor, Shakarpur, Delhi – 110092
Phone: +91 9958083332
Email: [email protected]
Website: www.helloji.com
Workforce: Not disclosed

COMPANY OVERVIEW

Establishment & Background:

Incorporation discrepancy: Official DRHP shows August 1, 2018, but some sources mention 2005
Industry: Travel & Tourism – Online Travel Agency (OTA) & Tour Operator
Headquartered in Shakarpur, Delhi
Workforce: Not explicitly disclosed (estimated 20-50 employees based on revenue scale)

Business Model:

Full-Service Travel Company offering end-to-end travel solutions
Service Portfolio:
1. Air Ticketing (53.28% of FY25 revenue – ₹14.98 cr):
  - Domestic and international flight bookings
  - Largest revenue contributor
  - Agent for multiple airlines
2. Hotel Bookings (44.70% of revenue – ₹7.65 cr):
  - Worldwide hotel reservations
  - Resorts, budget hotels, luxury properties
3. Packaged Tours (18.83% of revenue – ₹3.22 cr):
  - Inbound (international tourists visiting India) and outbound (Indians traveling abroad) customized tours
  - Leisure and corporate travel packages
4. Ancillary Services (6.64% of revenue – ₹1.86 cr):
  - Cab bookings
  - Visa assistance
  - Passport assistance
  - Travel insurance
  - 24×7 customer support
5. MICE – Meetings, Incentives, Conferences, Events (1.17% of revenue – ₹0.33 cr in FY25):
  - Nascent but growing segment
  - Corporate event management and travel coordination
Customer Segments:

B2B (57% of FY25 revenue): Corporate clients, travel agents, institutional customers
B2C (43% of FY25 revenue): Retail leisure travelers
Balanced mix reducing over-dependence on single segment
Geographic Focus:

Delhi-based operations (Shakarpur, Delhi headquarters)
Serving pan-India customers but likely Delhi-NCR heavy
Limited physical presence vs regional OTAs
Technology Platform:

Online booking website (www.helloji.com)
Mobile app availability unclear
IPO proceeds (₹2.33 cr) aimed at tech enhancement
Revenue Model:

Commission from airlines, hotels, tour operators
Service charges from customers
Markup on packages and ancillary services
Thin margin business typical of travel intermediaries

Market Position:

Positioned as Delhi-based full-service travel agency in hyper-competitive Indian OTA market
Indian online travel market: ₹50,000+ crore, growing at 12-15% CAGR
Competing with giants: MakeMyTrip (₹50,000+ cr market cap), EaseMyTrip (₹8,000+ cr), Yatra, Cleartrip, Booking.com, Airbnb, Agoda
Very small player: ₹28.18 cr revenue (FY25) vs MakeMyTrip ₹9,000+ cr
Limited brand recognition and marketing budget
Niche presence in Delhi-NCR region

Operations:

Headquarters: WA-89, Third Floor, Shakarpur, Delhi
Workforce: Estimated 20-50 employees (not disclosed)
Technology: Online platform, partnerships with airlines/hotels/aggregators
Distribution: Direct B2C website, B2B corporate tie-ups, travel agent network

Company Strengths

Modest Revenue & Profit Growth – Revenue +8%, PAT +16% (FY24 to FY25):
- FY25 revenue: ₹28.18 cr (+8.5% vs ₹25.97 cr FY24)
- FY25 PAT: ₹2.10 cr (+16.7% vs ₹1.80 cr FY24)
- Consistent growth demonstrating business sustainability
- PAT margin: 6.9% (FY24) → 7.5% (FY25) – improving profitability
- Positive outlook per analysts and brokers
Balanced B2B-B2C Revenue Mix – Diversified Customer Base:
- B2B segment: 56.98% of FY25 revenue (corporate, agents, institutional)
- B2C segment: 43.02% of FY25 revenue (retail leisure travelers)
- Reduces over-dependence on single customer segment
- B2B provides stable base revenue; B2C offers higher margin potential
- Cross-selling opportunities across segments
Diversified Service Portfolio – Multiple Revenue Streams:
- Five service categories: Air ticketing (53%), hotels (45%), packages (19%), ancillaries (7%), MICE (1%)
- Reduces dependency on single service vertical
- Ancillary services (visa, insurance, cabs) add margin
- MICE segment nascent but growing (corporate events market opportunity)
- Cross-selling potential increases customer lifetime value
Reasonable Valuation – P/E ~14x:
- Issue priced at P/E of ~14.07x (pre-issue basis) – reasonable for travel SME
- Lower than some aggressive SME IPO pricings (25-35x)
- Small post-IPO market cap ~₹40-41 cr provides room for growth
- Valuation justified by modest but consistent growth
Asset-Light Business Model – Low Capital Requirements:
- Travel agency model requires minimal physical assets
- No inventory holding (unlike retail or manufacturing)
- Scalable with technology investment
- Outsourced model (airlines/hotels own assets)
- Low capex intensity enables faster growth with limited capital
100% Fresh Issue – All Proceeds for Company Growth:
- Entire ₹10.96 cr goes to company (no OFS)
- Demonstrates promoter commitment
- Capital for technology and working capital to scale operations
- No promoter exit or partial selling
Growing Indian Travel Market – Industry Tailwind:
- Indian travel and tourism market: ₹50,000+ crore, growing at 12-15% CAGR
- Post-COVID travel boom continuing
- Rising disposable incomes driving leisure travel
- Corporate travel recovering to pre-pandemic levels
- Digitization of travel bookings increasing online penetration
Modest GMP (₹0-11) – Some Grey Market Interest:
- Latest GMP: ₹11 (9.32% premium) per GAINIPO as of Dec 2
- Earlier reports showed ₹0 (flat)
- Some positive sentiment emerging close to opening
- Expected listing gains 0-9% – modest but positive

Key Risks & Challenges

Hyper-Competitive OTA Market – Fighting Goliaths:
- Intense competition from category dominators:
  - MakeMyTrip: ₹50,000+ cr market cap, 25+ year history, dominant player (40%+ market share)
  - EaseMyTrip: ₹8,000+ cr market cap, zero commission model
  - Yatra: Listed OTA with strong brand
  - Cleartrip: Flipkart-owned, deep pockets
  - International Giants: Booking.com, Airbnb, Agoda, Expedia (billions in revenue)
- Thousands of regional travel agencies and aggregators
- Price-based competition with zero/low commission models
- Customer acquisition costs (CAC) extremely high due to intense competition
- Brand loyalty limited – customers book based on best price/convenience
- Helloji’s ₹28.18 cr revenue is 0.3% of MakeMyTrip’s scale!
Very Small Scale – ₹28 Cr Revenue, ₹40 Cr Market Cap:
- Revenue: ₹28.18 cr (FY25) – minuscule in travel industry
- Post-IPO market cap: ~₹40-41 cr – extremely small
- Workforce estimated 20-50 employees – limited organizational bandwidth
- Difficult to compete with well-funded OTAs spending crores on marketing
- Cannot match technology investments of giants
- Limited negotiating power with airlines/hotels due to small volumes
Heavy Working Capital Focus – 59.8% of IPO Proceeds:
- ₹4.96 crore (59.8% of net proceeds) allocated to working capital – major red flag
- Indicates severe cash flow strain
- Travel agency model has working capital challenges:
  - Advance payments to airlines/hotels
  - Commission received with 30-90 day delay
  - Refund processing during cancellations
- Continuous liquidity requirements may necessitate future fundraising
- Cash generation capability questionable despite profitability
Geographic Concentration – Delhi-Based with Limited Pan-India Presence:
- Headquarters in Shakarpur, Delhi (not even premium location)
- No disclosed branch offices or regional presence
- Likely revenue concentrated in Delhi-NCR region
- Limited national footprint vs competitors with 100+ city presence
- Difficult to serve customers in other regions effectively
- Regional economic slowdown in Delhi = severe business impact
Thin Profit Margins – 7.5% PAT Margin:
- PAT margin: 7.5% (FY25) – thin profitability typical of travel intermediaries
- Travel agency margins structurally low (3-10%) due to:
  - Commission-based model
  - Intense competition forcing margin compression
  - Limited pricing power
- Small margin for error – any operational inefficiency = losses
- Cannot absorb marketing spend or technology investments easily
- Vulnerable to airline/hotel commission cuts
Recent Management Appointments – Red Flag Just Before IPO:
- MD appointed August 14, 2025 (just before September DRHP filing!)
- CFO appointed August 14, 2025 (same day as MD)
- Company Secretary appointed August 27, 2025
- Timing suspicious – management team assembled just for IPO?
- Questions about management stability and experience
- Potential lack of operational continuity
- Investors should be wary of last-minute management changes
Low/Flat GMP (₹0-11) – Mixed Market Signals:
- GMP fluctuating between ₹0 (flat) and ₹11 (9.32%)
- Initial flat GMP indicating skepticism
- Latest ₹11 GMP modest at best
- Lukewarm grey market interest compared to other IPOs
- Expected listing gains only 0-9% – limited upside
- Risk of flat or negative listing if sentiment turns
Industry Cyclicality – Vulnerable to Economic Downturns:
- Travel industry highly cyclical and discretionary spending
- Economic slowdowns = immediate impact on leisure travel
- Corporate budget cuts = MICE and B2B revenue decline
- Pandemics, terrorism, geopolitical tensions = catastrophic impact (COVID-19 precedent)
- Oil price spikes = higher airfares = reduced travel
- No defensive characteristics
Technology Disadvantage – ₹2.33 Cr Investment vs Giants’ Crores:
- IPO allocating only ₹2.33 cr for technology (28% of proceeds)
- MakeMyTrip/EaseMyTrip spending ₹100+ cr annually on tech
- Platform features, mobile app, AI/ML personalization require continuous investment
- Difficult to match user experience of well-funded competitors
- Technology gap widens over time
- Customer expectations rising (instant booking, cancellations, 24×7 support)
Commission Rate Pressure – Airlines/Hotels Reducing Commissions:

Global trend: Airlines reducing agent commissions (some to 0%)
Hotels preferring direct bookings over OTA commissions
OTA margins compressed as suppliers cut payouts
Shift to service fee model facing customer resistance
Small players like Helloji hit hardest vs giants with scale

Customer Acquisition Cost (CAC) Rising – Marketing Burn:

Digital marketing costs (Google, Meta) increasing dramatically
OTAs spending 15-25% of revenue on customer acquisition
Helloji’s small scale makes CAC recovery difficult
Limited marketing budget vs giants’ crores in ad spend
Difficult to build brand awareness and recall
Performance marketing ROI declining in crowded space

Regulatory Risks – IATA, Airlines, Government Policies:

Subject to IATA regulations and airline policies
Government changes to GST, TDS on travel bookings
Airline bankruptcy or operational issues impact revenue
Visa policy changes affecting international travel
FDI restrictions in aviation sector
Compliance costs rising

CONCERNS: Very small scale (₹28.18 cr revenue, ₹40 cr market cap) competing in hyper-competitive OTA space against MakeMyTrip (₹50K cr), EaseMyTrip (₹8K cr), Booking.com. Heavy working capital focus (59.8% or ₹4.96 cr of IPO). Recent management appointments (MD, CFO, CS all appointed Aug 2025, just before Sept IPO filing – red flag!). Geographic concentration (Delhi-based), thin margins (7.5% PAT), flat/low GMP (₹0-11, 0-9%), limited technology budget (₹2.33 cr), industry cyclicality. Travel agency model structurally low-margin with high competition. POSITIVES: Modest growth (+8% revenue, +16% PAT), balanced B2B-B2C mix, diversified services, reasonable P/E 14x, asset-light model, 100% fresh issue.

Disclaimer: This information is based on publicly available sources including SEBI RHP filings, analyst reports, and company disclosures. Investors should conduct their own research and consult with financial advisors before making investment decisions. Past performance is not indicative of future results. SME investments carry higher risks than mainboard listings.