Indian online travel agency, Yatra Online, is set to launch its initial public offering (IPO) on Thursday, with the public offer available for subscription until Monday, September 18. The company's shares will be listed on BSE and NSE, as per the red herring prospectus.
The IPO comprises a fresh issue worth Rs 602 crore (Rs 1 crore = $120,677) and an offer for sale (OFS) of up to 12,183,099 equity shares. Promoters including THCL Travel Holding Cyprus and Pandara Trust-Scheme 1 Represented By Its trustee Vistara ITCL (India) are participating in the OFS. The company will not receive any proceeds from the OFS; instead, the promoters will benefit from selling part of their stakes.
The breakdown of the IPO allocation is as follows: 75% reserved for qualified institutional buyers (QIBs), 15% allocated to non-institutional investors (NIIs), and the remaining 10% kept for retail individual investors (RIIs). Companies such as SBI Capital Markets, DAM Capital Advisors, and IIFL Securities are managing the issue, while Link Intime India is acting as the registrar.
Proceeds from the fresh issue will be primarily used for strategic investments, acquisitions and inorganic growth (up to Rs 150 crore), and investment in customer acquisition and retention, technology advancement, and other organic growth initiatives (about Rs 392 crore). A portion of the proceeds will also be used for general corporate purposes.
Yatra Online has established itself as India's largest corporate travel services provider in terms of number of corporate clients and as the third-largest online travel company in terms of gross booking revenue and operating revenue for Fiscal Year 2023. The company boasts over 2,105,600 hotel and accommodation tie-ups as of March 31, 2023.
According to the red herring prospectus, Yatra Online plans to continue growing its customer base by providing business and leisure travellers with a seamless, integrated technology platform. The company also aims to leverage its robust relationships with air carriers, corporate and SME customers to provide a technology-enabled digital freight forward platform covering ocean freight, surface logistics and air cargo.
The allotment of equity shares is expected to be carried out on September 25, with refunds initiated on September 26 and shares credited in demat accounts by September 27. As per Chittorgarh's report, the company's shares are expected to be listed on September 28, 2023.
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