scorecardresearchAnother IPO? Yatra Online files draft papers with Sebi

Another IPO? Yatra Online files draft papers with Sebi

Updated: 28 Mar 2022, 11:32 AM IST
TL;DR.

As per the Draft Red Herring Prospectus, the IPO would include a fresh issue of shares worth 750 crore and an offer for sale (OFS) of up to 93.2 lakh shares.

As per the Draft Red Herring Prospectus, the IPO would include a fresh issue of shares worth  <span class='webrupee'>₹</span>750 crore and an offer for sale (OFS) of up to 93.2 lakh shares.

As per the Draft Red Herring Prospectus, the IPO would include a fresh issue of shares worth 750 crore and an offer for sale (OFS) of up to 93.2 lakh shares.

Travel services provider Yatra Online has filed draft papers with the market regulator (Securities and Exchange Board of India) for an initial public offering. As per the Draft Red Herring Prospectus, the IPO would include a fresh issue of shares worth 750 crore and an offer for sale (OFS) of up to 93.2 lakh shares.

The OFS will comprise the sale of up to 88.96 lakh equity shares by THCL Travel Holdings Cyprus which amounts to approximately 8 percent of the shares outstanding of Yatra Online Limited and up to 4.31 lakh equity shares by Pandara Trust – Scheme I through its trustee Vistra ITCL (India) Ltd.

The company plans to utilise the net proceeds from the fresh issue for strategic investments, acquisitions and inorganic growth and investment in customer acquisition and other organic growth initiatives, the draft papers noted. The proceeds would also be utilised for general corporate purposes.

Also, the company might consider a further issue of equity shares, including a private placement aggregating up to 145 crore. In such a case, the quantum of the fresh issue will come down, it added.

SBI Capital Markets Ltd., DAM Capital Advisors Ltd. and IIFL Securities Ltd. are the book running lead managers for the issue.

The company had raised 510 crore through an initial public offer (IPO) with an issue price of 187 per share.

In March 2021, another travel service provider Easy Trip Planners (Ease My Trip) launched an IPO to raise around 510 crore. It had a muted debut compared to the oversubscription seen during the IPO and is the only listed peer on the Indian bourses. On the first day of listing, Ease My Trip ended at 206.50, 10 percent above its IPO price of 187. The online travel firm’s 510-crore issue was subscribed 159 times. The stock is currently up 81 percent from its IPO price.

Yatra Online said that it expects the IPO to enable access to domestic Indian institutional and retail investors who are currently excluded from investing in Yatra Online, Inc. through its NASDAQ listing due to regulatory constraints. Further, it expects to expand the potential shareholder base of the consolidated company and increase its visibility.

The IPO would also help raise capital at a potentially higher valuation thereby reducing dilution and balance sheet risk, the company added.

 

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First Published: 28 Mar 2022, 11:15 AM IST