Online travel agency Yatra Online Ltd is set to launch its initial public offering (IPO) on the Indian stock exchanges on September 15, 2023. This move makes Yatra the second online travel agency to be listed on the Indian stock exchanges, following EaseMyTrip. Other Indian travel companies like Ixigo and Oyo are also considering potential listings, signaling an increased interest in public markets within the Indian travel sector.
Yatra's IPO comprises a fresh issue of shares worth INR 6.1 billion, a decrease from the previously planned INR 7.5 billion. The company has also secured a pre-IPO placement of around INR 620 million from one of its promoters, THCL Travel Holding Cyprus Ltd. The initial share sale will conclude on September 20, 2023, with bidding for anchor investors opening on September 14 and for retail on September 15.
The proceeds from the fresh issue will be utilized for strategic investments, acquisitions and inorganic growth (INR 1.5 billion), customer acquisition and retention, technology advancement, and other organic growth initiatives (INR 4 billion). The remaining funds will be designated for general corporate purposes.
Co-Founder and CEO Dhruv Shringi had previously highlighted that the funds raised from the listing would primarily be used for expansion. He mentioned that the company would also invest in technology and increase its workforce on the sales side for customer acquisition. Shringi added that they would continue to look at acquisitions as part of their growth strategy.
Yatra had initially planned to launch the IPO in March 2023 but postponed due to the overall macro environment and global market sentiment. Despite this, feedback from its India investor outreach has been positive, attributed to the company's strong performance and favorable macro trends suggesting potential substantial growth in the sector.
The company's financial results for the quarter ended March 31, 2023, showed a profit of INR 7.5 million, a significant improvement from the INR 53.4 million loss in the corresponding quarter of the previous year. Yatra's revenue and adjusted revenue for the same quarter were reported at INR 1.2 billion and INR 1.9 billion respectively.
The shares of Yatra Online Ltd will be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The book-running lead managers to the IPO are SBI Capital Markets Ltd, DAM Capital Advisors Ltd, and IIFL Securities Ltd.
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