“Juniper Hotels, the proud owner and operator of the ‘Hyatt’ hotel chain, is set to raise a whopping Rs 1,800 crore! This exciting move comes as they launch their Initial Public Offering (IPO), which is entirely composed of 5 crore fresh equity shares. It’s a big step for Juniper Hotels, and a potentially great opportunity for investors!”
“Juniper Hotels’ IPO is set to open for public bidding on Wednesday, February 21. Investors can participate by applying for a minimum of one lot of 40 shares or its multiples. The shares will be sold in the price band of Rs 342-360 each. The IPO is scheduled to conclude on Friday, February 23, and brokerages have mixed views about it.”Some analysts see a wealth of opportunities due to improved efficiencies, acquisitions, and expansion plans. However, others advise investors to skip the IPO due to the company’s mounting debt, loss-making nature, and asset-heavy business model.”
“Juniper Hotels, the owner and operator of the ‘Hyatt’ hotel chain, is aiming to raise Rs 1,800 crore through the IPO, which consists entirely of 5 crore fresh equity shares. The funds raised will be used to repay, prepay, or redeem certain outstanding borrowings of the company, either partly or fully.”
“A significant growth in revenue was observed by Juniper Hotels, with a CAGR of 100.20% over the FY21-23 period. The Ebitda for FY23 was Rs 271.9 crore, a stark contrast to the negative Ebitda of Rs 43 lakh in FY21. The net loss also saw a decrease to Rs 1.5 crore in FY23 from Rs 19.95 crore in FY21, as reported by StoxBox.”
“Given the company’s asset-heavy business model, rising debt levels, and continued loss-making status, an ‘avoid’ rating for the issue has been recommended. A reconsideration for further evaluation of the company will be made following sustained financial performance over the next few quarters.”
“Ventura Securities has suggested subscribing to the issue, citing reasons such as enhancement of facilities at existing assets, exploration of value accretive acquisition of assets and selective expansion, and continued improvement in efficiencies including enhancing utilisation of space to increase revenues.”
“Prior to its IPO, Juniper Hotels allocated 2.25 crore equity shares at Rs 360 each, garnering Rs 810 crore from several anchor investors including Fidelity Funds, Government Pension Fund Global, Carmignac Portfolio, HSBC Global Investment, Nedgroup Investment, Marshall Wace Investment Strategies, Natixis International Funds, Goldman Sachs and Societe Generale.”
