Yatra Online, the renowned travel company, is all set to launch its Rs 775-crore Initial Public Offering (IPO) for subscription starting September 15. Before you dive in, here are 10 crucial things you should know about this exciting investment opportunity:
1. IPO Dates: The IPO subscription window opens on September 15, 2023, and will close on September 20, 2023.
2. Price Band: Yatra Online's IPO is priced in the range of Rs 135-142 per share.
3. Offering Details: This IPO comprises fresh shares worth Rs 602 crore and an offer-for-sale (OFS) of 1.22 crore equity shares valued at Rs 173 crore by the promoter and an investor. The company owner, THCL Travel Holding Cyprus, will sell around 17.5 lakh equity shares. Another investor, Pandara Trust – SCHEME I, managed by Vistra ITCL (India), is also planning to sell all their 4.3 lakh shares and leave the company.
4. Objectives of the Issue: The proceeds from the IPO will be used for strategic investments, acquisitions, inorganic growth (estimated at Rs 150 crore), and investment in customer acquisition, retention, technology, and other organic growth initiatives (cumulative sum of Rs 392 crore).
5. Lot Size: Investors can bid for a minimum of 105 equity shares and in multiples of 105 thereafter. This means the minimum investment for retail investors would be Rs 14,175 (105 (Lot size) x 135 (lower price band)), and it will increase to Rs 14,910 at the upper end.
6. Company Profile: Yatra Online is the third-largest online travel company in India, known for its strong presence in the OTA (Online Travel Agency) sector. It boasts extensive hotel and accommodation tie-ups, with over 21,05,600 tie-ups as of March 31, 2023. Yatra Online is also a leading corporate travel service provider, serving 813 large corporate customers and over 49,800 registered SME customers.
7. Valuation: Analysts at Stoxbox express positivity about Yatra Online's future. They believe it's well-positioned to capture a significant share of India's growing tourism industry due to its strong relationships with both B2B and B2C customers. Profitability is expected to improve as the online travel market share grows faster than captive players. With FY23 profits and robust revenue growth, Yatra Online looks promising in the medium to long term.
8. Promoters: THCL Travel Holding Cyprus holds an 88.91% stake in the company, while Asia Consolidated DMC Pte Ltd has a 9.68% stake. Network18 Media & Investments and Reliance Retail, both subsidiaries of Reliance Industries, are public shareholders with a 0.95% and 0.08% stake, respectively.
9. Risk Factors: Yatra Online's profit margins heavily depend on B2B business, and changes in travel preferences, increased travel costs, and spending habits can impact the demand for travel services and hotel rooms, potentially affecting the company's financial performance.
10. Listing Date: Yatra Online shares are set to be listed on both the NSE and BSE. The expected listing date is September 29, 2023, although there hasn't been an official announcement yet.
Investors, now armed with these key insights, can make an informed decision about participating in Yatra Online's IPO and potentially becoming part of this exciting journey.