September 14, 2023
Yatra Online, a leading name in the online travel industry, has unveiled the pricing details for its forthcoming Initial Public Offering (IPO), setting the price range at Rs 135-142 per equity share. The IPO is strategically timed as the company seeks to secure capital for its expansion plans. The subscription window for the IPO will open on September 15, 2023, and remain accessible until September 20, 2023. Investors can participate by bidding for a minimum of 105 equity shares, with additional multiples of 105 shares.
The IPO is divided into two parts: a fresh issuance of equity shares valued at Rs 602 crore and an Offer for Sale (OFS) involving up to 12,183,099 shares. If the IPO is fully subscribed at the upper price band, it could raise up to Rs 775 crore in capital. Notably, Yatra Online executed a pre-IPO placement worth Rs 62.01 crore through a rights issue on December 10, 2022. During this pre-IPO placement, the company issued 2,627,697 equity shares to its promoter, THCL Travel Holding Cyprus, at a price of Rs 236 per share.
Dhruv Shringi, the CEO of Yatra Online, shared insights into the allocation of the funds raised through the IPO. “A portion of the proceeds, approximately Rs 150 crore, will be earmarked for strategic investments, acquisitions, and inorganic growth opportunities,” stated Shringi. He further explained that around Rs 392 crore would be allocated to initiatives related to customer acquisition and retention, technology enhancements, and other organic growth endeavors, in addition to addressing general corporate needs.
The equity shares issued through this IPO are slated to be listed on both the BSE and NSE, offering investors opportunities for trading and liquidity.
Yatra Online has demonstrated impressive growth in its consolidated revenue from operations, which surged to Rs 380 crores in FY23, compared to Rs 198 crore in the previous fiscal year. This significant growth can be attributed to the gradual recovery in both the consumer and corporate travel sectors, as the impact of the COVID-19 pandemic continues to diminish.
Yatra Online’s IPO, comprising fresh issuance and an offer for sale, is closely watched by investors and industry observers alike. According to regulatory filings, the total public float is valued at Rs 775 crore at the upper end of the price band. This IPO is taking place in a competitive landscape, with rivals such as Easy Trip Planners Ltd. having recently gone public, though facing stock price challenges over the past year.
With its diverse portfolio, including flight, hotel, and bus bookings, as well as vacation packages, Yatra Online holds a significant position in the online travel sector. The company’s extensive partnerships with hotels and accommodation providers further bolster its competitive edge in the market.
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