Yatra Online is all set to go public with its initial public offering (IPO), starting on September 15 and closing on September 20. The company has set the price band for its equity shares at ₹135-142 each for the public offering.
Minimum Bid and Offer Details
Investors can participate by bidding for a minimum lot of 105 equity shares, with the option to bid in multiples of 105 shares thereafter.
IPO Composition
The IPO consists of two components: a fresh issuance of shares worth ₹602 crore and an offer for sale (OFS) of up to 12,183,099 shares.
Pre-IPO Placement
Yatra Online conducted a pre-IPO placement of ₹62.01 crore through a rights issue in December 2022, wherein it allotted 2,627,697 shares with a face value of ₹1 each to its promoter, THCL.
Utilization of Proceeds
The proceeds from the fresh issue will be strategically used for investments, acquisitions, customer acquisition and retention, technology, and other growth initiatives, as well as general corporate purposes.
Key Players in the Offering
SBI Capital Markets, DAM Capital Advisors, and IIFL Securities are the book-running lead managers of the IPO, while Link Intime India is the registrar of the offer.
About Yatra Online
Yatra Online is a comprehensive travel platform offering access to hotels, homestays, accommodations, vacation packages, visa facilitation, tours, sightseeing, shows, and events. It boasts of being India’s largest corporate travel services provider and ranks third among online travel companies in India in terms of gross booking revenue and operating revenue for FY23.
Market Presence
The company has an extensive network of over 2,105,600 tie-ups with hotels and accommodations as of March 2023, surpassing its domestic OTA peers.
Positive Growth Prospects
The Indian travel industry is expected to grow at a CAGR of 9-11%, driven by tourism infrastructure development, increased discretionary spending, and heightened business and leisure travel. Online penetration in the industry is projected to reach 73-75%, with OTAs gaining a larger share over captive players.
Financial Performance and Risks
Yatra Online has demonstrated steady revenue growth over the past three years and achieved profitability in FY23, after gradually reducing losses. However, it is exposed to risks stemming from changing travel preferences, dependence on the airline ticketing business, competitive dynamics, and potential challenges related to internet search engine algorithms.
Ownership Structure
Following the IPO, the company’s promoters, Travel Holding Cyprus (THCL) and Asia Consolidated DMC (ACDPL), will maintain majority shareholding, allowing them to exert significant influence over the company.
Contingent Liabilities
Yatra Online also bears contingent liabilities, including ₹8.5 crores in unrecognised claims and ₹31.5 crore in service tax demands for FY23. These could impact the company’s financial condition if they materialize.
