Yatra Online IPO: Price Band Set at Rs 135-142 per Share, Rs 775 Crore Issue Opens on September 15
Yatra Online IPO
Yatra Online IPO: Exploring the Journey of India’s Leading Traveltech Startup
The travel and tourism industry in India is set to witness a significant milestone with the upcoming initial public offering (IPO) of Yatra Online, a prominent traveltech startup.
Yatra Online has officially fixed the price band of its IPO, generating substantial interest among investors and industry observers.
The company has set a price range of Rs 135-142 per share for this IPO, which is scheduled to open for subscription on September 15 and close on September 20, 2023.
Notably, anchor investors will have the opportunity to participate a day earlier on September 14. Yatra Online aims to raise Rs 775 crore through this IPO, marking a crucial step in its growth journey.
This article delves into the details of Yatra Online’s IPO, including the allocation of funds, the structure of the offering, and the company’s positioning in the traveltech sector.
Additionally, we explore the intended use of the funds raised through the IPO, shedding light on Yatra Online’s strategic vision for the future.
The IPO in Detail
Yatra Online’s IPO comprises a mix of fresh equity shares and an Offer for Sale (OFS) by promoters and existing shareholders.
The company plans to issue fresh equity shares valued at Rs 602 crore as part of this offering. Simultaneously, 1.218 crore shares will be sold under the OFS, allowing promoters and existing shareholders to monetize their holdings.
At the upper price band, the total issue size stands at Rs 775 crore, and the firm’s valuation is estimated at Rs 2,230 crore.
Prominent stakeholders participating in the OFS include THCL Travel Holding Cyprus, the promoter holding 17.5 lakh shares, and investor Pandara Trust – Scheme I, which intends to divest its entire 4,31,360 shares through the OFS.
The process of allotting shares to successful investors is scheduled for September 25, followed by the crediting of equity shares into the demat accounts of investors on September 26.
Yatra Online is expected to make its debut on the stock exchanges on September 29, marking a significant moment in its corporate journey.
Utilization of IPO Funds
A critical aspect of any IPO is understanding how the raised capital will be deployed by the company. In the case of Yatra Online, the fund utilization plan is outlined as follows:
- Strategic Investments and Growth: Yatra Online earmarks Rs 150 crore for strategic investments, acquisitions, and inorganic growth. This allocation signifies the company’s intent to expand its presence in the travel and technology sectors through partnerships and acquisitions that align with its strategic vision.
- Customer Acquisition and Technology: A substantial portion of the IPO proceeds, estimated at Rs 392 crore, will be channeled into customer acquisition, technology enhancements, and other initiatives focused on organic growth. In an ever-evolving digital landscape, investing in technology and customer-centric solutions is crucial for sustaining and expanding market share.
- General Corporate Purposes: The remaining funds will be utilized for general corporate purposes, providing Yatra Online with the flexibility to address various operational needs and opportunities that may arise in the future.
Promoter and Shareholder Landscape
Promoter THCL Travel Holding Cyprus holds a significant stake in Yatra Online, amounting to 88.91 percent. In addition to its stake in Yatra Online, THCL Travel Holding Cyprus also possesses a 9.68 percent stake in Asia Consolidated DMC Pte Ltd.
The presence of a robust promoter holding reflects the promoter’s confidence in the company’s potential and long-term growth prospects.
Moreover, Yatra Online has public shareholders, including Network18 Media and Investments, with a 0.95 percent stake, and Reliance Industries’ subsidiary Reliance Retail, which holds an 0.08 percent stake.
The diverse shareholder base underscores the interest and confidence that both public and private entities have in Yatra Online’s future.
About Yatra Online
Yatra Online proudly claims to be India’s largest corporate travel service provider, as measured by the number of corporate clients it serves.
Furthermore, it ranks as the third-largest online travel company in India among major Online Travel Agency (OTA) players, based on gross booking revenue and operating revenue for FY23.
A noteworthy distinction for Yatra Online is its extensive network of hotel and accommodation tie-ups. As of March FY23, the company has formed partnerships with over 21,05,600 hotels and accommodations, surpassing its competitors in the domestic OTA landscape.
This extensive network positions Yatra Online as a leading player in facilitating travel bookings, both for corporate clients and individual travelers.
Final Thoughts
In conclusion, Yatra Online’s upcoming IPO is poised to be a significant event in the Indian traveltech sector and the broader financial landscape.
The price band of Rs 135-142 per share and the overall issue size of Rs 775 crore signify the company’s commitment to expanding its presence and enhancing its technological capabilities.
As a key player in India’s traveltech ecosystem, Yatra Online has established itself as a go-to platform for travel bookings and corporate travel services.
The utilization of IPO funds for strategic investments, technology enhancements, and customer acquisition reflects the company’s forward-looking approach in a dynamic and competitive industry.
The IPO will not only provide Yatra Online with the capital needed for its growth and expansion plans but also offer investors an opportunity to be part of the company’s exciting journey.
As Yatra Online gears up for its listing on the stock exchanges, all eyes will be on its performance and the contributions it can make to India’s evolving travel and technology landscape.
