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Yatra Online IPO price set at ₹135-142 apiece, sharp discount to pre-issue share deal


Yatra Online IPO price set at ₹135-142 apiece, sharp discount to pre-issue share deal

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Yatra Online IPO price

In this article you will get a clear idea about IPO’s and specially about Yatra Online IPO price. An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance for the first time. An IPO allows a company to raise equity capital from public investors. The transition from a private to a public company can be an important time for private investors to fully realize gains from their investment as it typically includes a share premium for current private investors. Meanwhile, it also allows public investors to participate in the offering.

An IPO is a big step for a company as it provides the company with access to raising a lot of money. This gives the company a greater ability to grow and expand. The increased transparency and share listing credibility can also be a factor in helping it obtain better terms when seeking borrowed funds as well.

About Yatra Online:=

Nasdaq-listed Yatra Online, Inc. is an Indian online travel agency and travel search engine. It is based in NCR. Founded by Dhruv Shringi in August 2006, it  is the parent company of Yatra Online Ltd. (formerly known as Yatra Online Private Limited). In April 2012, it became the second-largest online travel service in India, with a 30 percent share of the ₹370 billion (US$4.6 billion) market for online travel-related transactions. (Yatra Online IPO price)

Initial Public Offerings of Yatra Online:-

On Tuesday, the online travel booking services firm Yatra Online Ltd. set the price band of its initial public offering (IPO) at ₹135-142 apiece, which is at a steep discount to the price at which the company had issued shares to one of its promoters last year. Yatra Online had sold shares worth ₹62.01 crore by way of a rights issue to a promoter, THCL Travel Holding Cyprus Ltd., as a pre-IPO placement on 10 December 2022 at an issue price of ₹236 apiece, the company said in a statement. (Yatra Online IPO price)

The IPO, which comprises a fresh issuance of ₹602 crore worth of shares and an offer for sale (OFS) of up to 12.2 million shares by a promoter and existing investor, will be open for subscription from 15 September to 20 September. The total public float is valued at ₹775 crore at the upper price band, according to regulatory filings. (Yatra Online IPO price)

Yatra’s rivals:-

Shares of Yatra’s closest rival Easy Trip Planners Ltd., which listed in March 2021 through a ₹510 crore IPO, has fallen 21% over the past year. EaseMyTrip focuses primarily on flight and hotel booking services whereas Yatra, founded in 2006, offers flight, hotels and bus booking, apart from vacation package. The company’s other key rivals include MakeMyTrip (India) Pvt Ltd., Cleartrip Pvt Ltd., Thomas Cook India Ltd. and so on. (Yatra Online IPO price)

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Necessary details about the IPO:-

THCL Travel Holding Cyprus Ltd. with a 88.64% holding in Yatra, will offload 8.89 million shares in the IPO, while investor “Pandara Trust – Scheme I Represented By Its Trustee Vistra Itcl (India) Ltd” will offload 4,31,360 shares, according to Yatra’s draft red herring prospectus (DRHP). Asia Consolidated DMC Pte. Ltd. (Singapore), with 9.91% stake is Yatra Online’s other promoter. (Yatra Online IPO price)

SBI Capital Markets Ltd, IIFL Securities Ltd and DAM Capital Advisors Ltd are the book running lead managers for the IPO. The company said that ₹150 crore from the IPO proceeds will be used for strategic investments, acquisitions, and inorganic growth, while ₹392 crore could be used for investments in customer acquisition and retention, technology, and other organic growth initiatives. (Yatra Online IPO price)

Yatra’s Impressive Fiscal 2023 Performance:-

For fiscal 2023, Yatra reported a 92% year-on-year jump in consolidated revenue to ₹380.16 crore from ₹198.07 crore in FY22, primarily driven by a recovery in its consumer and corporate travel businesses post the fading impact of COVID-19. Net profit stood at ₹7.63 crore, compared to a loss of ₹30.78 crore in FY22. (Yatra Online IPO price)

Yatra fiscal performance 2022

Yatra Online claims to have one of the largest number of tie-ups with hotels and accommodation facilities among key domestic online travel agencies, as on 31 March 2023. (Yatra Online IPO price)

Note: All these shares are subject to market risk. Read all the necessary documents carefully before investing.

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