India’s leading online corporate travel agency, Yatra Online, is gearing up to launch its highly anticipated initial public offering (IPO) on September 15, with a subscription period lasting until September 18. The company’s shares will be traded on both the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange), according to details outlined in the red herring prospectus.
The Yatra.com IPO is a significant financial event, encompassing a fresh issue valued at INR 602 crore (approximately USD 72.2 million) and an offer for sale (OFS) of up to 12,183,099 equity shares. The company will announce the price band in the next few days.
The company had filed its DHRP with SEBI on March 24 last year to raise more than INR 750 crore. It got SEBI approval in November 2022.
In the OFS, key stakeholders like THCL Travel Holding Cyprus and Pandara Trust-Scheme 1, represented by its trustee Vistara ITCL (India), will participate. It’s important to note that the company itself will not directly receive any proceeds from the OFS; instead, the promoters will divest a portion of their holdings.
The allocation for the IPO is divided as follows: 75 per cent is reserved for qualified institutional buyers (QIBs), 15 per cent is earmarked for non-institutional investors (NIIs), and the remaining 10 per cent is set aside for retail individual investors (RIIs). To facilitate the offering, prominent financial entities such as SBI Capital Markets, DAM Capital Advisors, and IIFL Securities are overseeing the process, while Link Intime India is the appointed registrar.
The capital raised through the fresh issue will be deployed for various strategic initiatives. These include investments in potential acquisitions and inorganic growth opportunities, with an allocation of up to INR 150 crore. Additionally, a substantial portion of the funds will be dedicated to enhancing customer acquisition and retention, advancing technological capabilities, and pursuing other organic growth avenues, amounting to approximately INR 392 crore.
A fraction of the proceeds will also cater to general corporate purposes.
The firm will utilise the net proceeds of the fresh issue to the tune of INR 900 crore mainly for repayment/ prepayment, in full or in part, of certain borrowings availed by the company and its subsidiaries, including payment of the interest accrued thereon and the remaining for general corporate purposes. The company had re-filed its preliminary papers with the regulator in March this year.
Yatra Online has positioned itself as India’s foremost corporate travel services provider, distinguished by its corporate client base. Additionally, it ranks as the third-largest online travel company in terms of both gross booking revenue and operating revenue for the fiscal year 2023. The company said it prides itself on a vast network, boasting over 2,105,600 hotel and accommodation partnerships as of March 31, 2023.As outlined in the red herring prospectus, Yatra Online’s future trajectory aims to expand its customer base by offering an integrated technology platform to both business and leisure travellers. Leveraging its strong relationships with airlines, corporate entities, and small and medium-sized businesses (SMEs), the company also envisions establishing a technology-driven digital freight forwarding platform, encompassing ocean freight, surface logistics, and air cargo.
Investors can anticipate the equity share allotment process to unfold on September 25, with refunds set to be initiated on September 26. Shares will be credited directly to investors’ demat accounts by September 27.
