Juniper Hotels Ltd (JHL) has filed preliminary papers with the Securities and Exchange Board of India (SEBI) on Friday to raise Rs 1,800 crore ($240 million) through an initial public offering (IPO). The company, which operates hotels under the Hyatt brand, is co-owned by Saraf Hotels Limited and Two Seas Holdings Limited, an affiliate of the global hospitality entity, Hyatt Hotels (NYSE:H) Corporation.
The proposed IPO will consist entirely of a fresh issue of equity shares with no Offer for Sale (OFS) component. According to the Draft Red Herring Prospectus (DRHP), the issue will be made through the book-building process. Not less than 75% of the issue will be available for allocation to qualified institutional buyers, no more than 15% will be available for non-institutional investors, and a maximum of 10% will be allocated to retail individual investors.
In consultation with the lead bankers to the issue - JM Financial Limited, CLSA India Private Limited, and ICICI Securities Limited - Juniper Hotels may consider a further issue of equity shares on a private placement for cash consideration aggregating up to Rs 350 crore ($46 million). If such placement is completed, the fresh issue size will be reduced.
The net proceeds of Rs 1,500 crore ($200 million) from the IPO are proposed to be used towards repayment, prepayment, or redemption, in full or in part, of certain outstanding borrowings availed by the company and its subsidiaries. A portion of the proceeds will also be used for general corporate purposes.
Juniper Hotels manages a diverse portfolio consisting of seven hotels and serviced apartments and owns 20% of the total 1836 “Hyatt” affiliated hotel keys in India as of June 30, 2023. Their properties span across various categories including luxury, upper upscale, and upscale, located across six strategic cities in Mumbai, Delhi, Ahmedabad, Lucknow, Raipur, and Hampi.
For the fiscal year 2023, the company's revenue from operations more than doubled to Rs 666.85 crore against Rs 308.69 crore a year ago. The net loss narrowed to Rs 1.5 crore in fiscal 2023 over Rs 188.03 crore in fiscal 2022.
The equity shares of the company are proposed to be listed on the BSE and NSE.
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