Nasdaq-listed MakeMyTrip files confidential IPO papers for India unit
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Nasdaq-listed MakeMyTrip Ltd said on Friday that its India unit, a wholly owned subsidiary, has confidentially filed a pre-filed draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for its proposed initial public offering (IPO).
The filing marks the online travel platform's move towards listing its domestic business on Indian stock exchanges.
"MakeMyTrip (India) Limited (formerly known as MakeMyTrip (India) Private Limited) ("MMT India") has confidentially filed a pre-filed draft red herring prospectus with the Securities and Exchange Board of India, BSE Limited and the National Stock Exchange of India Limited in relation to the proposed initial public offering and listing of its equity shares on the main boards of the stock exchanges," the company said in a regulatory filing.
In a separate filing with the U.S. Securities and Exchange Commission (SEC), the company said the proposed IPO will comprise an offer for sale (OFS) of equity shares in MMT India by MakeMyTrip and its wholly owned subsidiary, ibibo Group Holdings (Singapore) Pte. Ltd.
"The proposed initial public offering is expected to involve the sale of equity shares in MMT India by MakeMyTrip and its wholly owned subsidiary, ibibo Group Holdings (Singapore) Pte. Ltd. ("ibibo Holdings")," the filing said.
Following the IPO, MMT India will continue to remain a subsidiary of MakeMyTrip, and its financials will continue to be consolidated with those of the parent company.
The company said listing MMT India in India is expected to enhance its brand visibility and strengthen its ability to attract, retain, and incentivise talent in the highly competitive technology sector.
MakeMyTrip added that the net proceeds received by MakeMyTrip and ibibo Holdings from the share sale will further strengthen the group's cash position and will be deployed towards long-term growth initiatives, strategic acquisitions, and the repurchase of various classes of securities, including convertible securities.
"The net proceeds received by MakeMyTrip and ibibo Holdings from the sale of shares in MMT India will further strengthen the cash position of MakeMyTrip and are expected to be utilised for long-term growth, strategic inorganic initiatives, and the repurchase of different classes of securities, including convertible securities," the company said.
Subject to regulatory approvals, MakeMyTrip and MMT India also plan to evaluate options over the medium term that could enable shareholders to benefit from a security at the MMT India level that is fungible and listed across both the Indian and U.S. capital markets.