Yatra Online Announces IPO Launch on September 15
Corporate travel service provider Yatra Online is set to go public with its initial public offering (IPO) on September 15, 2023. This significant move in the online travel industry entails a fresh issuance of shares worth Rs 602 crore and an offer-for-sale (OFS) of 1,21,83,099 equity shares by the promoter and an investor.
IPO Details
The IPO comprises a fresh issuance of shares worth Rs 602 crore and an OFS of 1,21,83,099 equity shares. Promoter THCL Travel Holding Cyprus will offload 17,51,739 equity shares, while investor Pandara Trust – SCHEME I, represented by its trustee Vistra ITCL (India), plans to exit the company by selling its entire 4,31,360 shares through the OFS.
Yatra Online had previously raised Rs 62.01 crore from a rights issue and allotted 26,27,697 shares to THCL at an issue price of Rs 236 each, as part of the pre-IPO placement. Consequently, the size of the fresh issue of Rs 750 crore has been reduced by Rs 148 crore, including the pre-IPO placement of Rs 62.01 crore, resulting in a fresh issue size of Rs 602 crore.
Price Band to be Announced
The specific price band for the IPO will be announced by the company in the coming days, providing potential investors with essential information to make informed decisions.
Utilization of Proceeds
Yatra Online intends to utilize the IPO proceeds for strategic investments, acquisitions, and inorganic growth, with an allocation of Rs 150 crore. Additionally, the company plans to invest in customer acquisition and retention, technology, and other organic growth initiatives, totaling an estimated Rs 392 crore. The remaining funds will be allocated for general corporate purposes.
Promoter Holdings and Public Shareholders
Promoters THCL Travel Holding Cyprus currently hold an 88.91 percent stake in Yatra Online, while Asia Consolidated DMC Pte Ltd holds 9.68 percent. Public shareholders include Network18 Media & Investments and Reliance Retail, subsidiaries of Reliance Industries, with 0.95 percent and 0.08 percent stakes, respectively.
IPO Timeline
The IPO will close on September 20, with the anchor book opening for a day on September 14. This timeline provides investors with a limited window of opportunity to participate in Yatra Online’s public offering.
Yatra Online’s Position in the Market
Yatra Online claims to be India’s largest corporate travel services provider in terms of the number of corporate clients. Additionally, it ranks as the third-largest online travel company in India among key online travel agency (OTA) players, based on gross booking revenue and operating revenue for FY23. The company boasts an extensive network of hotel and accommodation tie-ups, with over 21,05,600 tie-ups as of March FY23.
Key Players in the IPO
SBI Capital Markets, DAM Capital Advisors, and IIFL Securities have been appointed as the merchant bankers for the IPO, overseeing the financial aspects of the offering. Link Intime India is serving as the registrar, ensuring a smooth and transparent IPO process.
Yatra Online’s upcoming IPO represents a significant development in the online travel industry. With a fresh issuance of shares, strategic plans for the utilization of proceeds, and a strong market position, Yatra Online aims to capitalize on the growing demand for online travel services in India. Potential investors should closely monitor the price band announcement and consider participating in the IPO during the limited subscription window.
