The initial public offering (IPO) of Yatra Online Ltd, an online travel company, has not garnered strong investor interest so far, with only the retail portion being fully subscribed. The IPO, valued at ₹775.00 crore, commenced on September 15 and is set to close on September 20. Yatra Online is one of India’s largest corporate travel service providers, offering integrated travel solutions to corporate clients and direct consumers.
The IPO allocation includes 75% of shares for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 10% for Retail Investors. As of now, the retail category has been subscribed 1.79 times, the NII category is at 12%, and QIBs have subscribed about 7%. The grey market premium (GMP) for Yatra Online IPO today stands at ₹0, indicating that shares are trading at the issue price of ₹142 with no premium or discount.
Here are the key details of the Yatra Online IPO:
– The IPO opened for subscription on September 15 and will close on September 20.
– The basis for IPO share allotment is expected to be finalized on September 25, with refunds initiated on September 26. Shares will be credited to eligible allottees’ demat accounts on September 27.
– Yatra Online Ltd shares are set to be listed on BSE and NSE on September 29.
The company aims to raise ₹775 crore through its IPO, having already secured ₹348 crore from anchor investors on September 14. The IPO comprises a fresh issuance of ₹602 crore worth of shares and an offer for sale (OFS) of up to 1.22 crore shares by a promoter and an existing investor.
The price band for the Yatra Online IPO is ₹135 to ₹142 per equity share, with a face value of Re 1 each. The net proceeds from the offering will be used for strategic investments, acquisitions, inorganic expansion, general corporate purposes, customer acquisition and retention, technology, and other organic growth activities.
The book running lead managers for the IPO are SBI Capital Markets Ltd, DAM Capital Advisors Ltd, and IIFL Securities Ltd, while Link Intime India Private Ltd serves as the IPO registrar.
Yatra Online has adopted a unique “go-to-market” approach in both the B2B and B2C segments, reflecting a sizable addressable market. The company’s focus on high-margin corporate business is expected to drive strong bottom-line growth in the coming years, particularly with a projected 5-year CAGR of 15% in the B2B segment. At the upper price band, the IPO is valued at approximately 30.9x post-IPO EV/EBITDA. Arihant Capital Markets has recommended investors to subscribe for potential listing gains.
