IPO updates: Ixigo refiles DRHP with SEBI; Juniper Hotels’ ₹1,800 cr issue to open on Feb 21

Despite volatility in the secondary market, the primary market continues to see a surge in IPO activities. In a fresh development, Le Travenues Technology Ltd, which operates travel booking platform ixigo, has filed preliminary papers with SEBI to raise funds through an initial public offering (IPO) route, while Juniper Hotels has unveiled the price band for its public issue, which will open for subscription next week.

Ixigo retakes IPO route

Backed by SAIF Partners India IV, Peak XV and Micromax, the Gurugram-based travel company has refiled the draft papers with the SEBI for fundraising via IPO route. This is the second attempt by the company to list its shares on the domestic bourses after it filed a draft red herring prospectus (DRHP) filed with the regulator in August 2021, which could not materialise due to undisclosed reasons.

The IPO of Ixigo comprises fresh issue of equity shares worth ₹120 crore and an offer for sale (OFS) of 6,66,77,674 equity shares by the existing shareholders, as per the document filed with the SEBI on February 14. The fresh equity size is much lower than ₹750 crore proposed in the DRHP filed in 2021. The total issue size of the previous offering was ₹1,600 crore, including OFS of ₹850 crore, which got approval from the regulator in June 2023.

Under the OFS, SAIF Partners India IV, Peak XV Partners Investments V, Micromax Informatics, Placid Holdings, Catalyst Trusteeship, Madison India Capital HC, and co-founders Aloke Bajpai and Rajnish Kumar will offload their stakes in the company.

Out of the proposed ₹120 crore equity capital, the company intends to use ₹45 crore for meeting working capital requirements, and ₹25.8 crore for cloud infrastructure and technology. The remaining fund raised from fresh equities will be utilised for inorganic growth through unidentified acquisitions, other strategic initiatives, and general corporate purposes.

Launched in 2007 by Aloke Bajpai and Rajnish Kumar, Ixigo competes with listed companies such as EaseMyTrip and Yatra Online. Ixigo owns and operates multiple brands – ixigo flights, ixigo trains, ConfirmTkt and Abhibus, offering flight, train, buses, and hotels services to its customers through separate apps.

Juniper Hotels sets price band at ₹342-360

The luxury hotel developer, which operates Hyatt properties in India, has fixed the price band in the range of ₹342 to ₹360 per equity share for its ₹1,800 crore issue. The IPO of the hotel development and ownership company will open on February 21 and will close on February 23, while allocation to anchor investors is scheduled to take place on February 20. The tentative listing of the stock on the BSE and NSE is February 28, 2024.

The lot size of the Juniper Hotels IPO is 40 equity shares and in multiples thereafter, which means the minimum amount for retail investors will be ₹14,400 for one lot and the minimum will be ₹201,600 for 14 lots (560 shares).

As per the document filed with SEBI, 75% of the public issue is reserved for qualified institutional buyers (QIB), 15% for non-institutional Institutional Investors (NII), and remaining 10% for retail investors.

The ₹1,800 crore IPO of Juniper Hotels is completely a fresh issue of equity shares, and there is no OFS component. The company plans to utilise ₹1,500 crore for repayment, in full or in part, of certain outstanding borrowings availed by the company and its recent acquisitions, namely Chartered Hotels Private Limited and Chartered Hampi Hotels Private Limited. A part of the fund will be used to meet general corporate purposes.

Juniper Hotels is promoted by Saraf Hotels and its affiliate, Juniper Investments and Two Seas Holdings, an indirect subsidiary of a global hospitality company, Hyatt Hotels Corporation. The company owns and manages a portfolio consisting of seven hotels and serviced apartments and operates a total of 1,836 keys of "Hyatt" affiliated hotel keys in India as of September 30, 2023. Its hotels and serviced apartments are classified under three distinct segments luxury – the Grand Hyatt Mumbai Hotel and Residences and Andaz Delhi; upper upscale – the Hyatt Delhi Residences, Hyatt Regency Ahmedabad, Hyatt Regency Lucknow, and Hyatt Raipur; and upscale – Hyatt Place Hampi.

For the fiscal year 2023, the revenue from operations of the company increased by 116% to ₹666.85 crore against ₹308.68 crore in the previous fiscal. The restated loss for the year narrowed to ₹1.5 crore in FY23 from ₹188 crore in the fiscal year 2022. For the six months ended September 30, 2023, revenue from operations of the company stood at ₹336 crore.

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