Yatra Online IPO prices at ₹135-142 each, offers pre-issue discount

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Yatra Online IPO Price and Pre-Issue Discount

Mumbai, India – Yatra Online Ltd., a leading provider of online travel booking services, has announced the price range for its highly anticipated initial public offering (IPO). The Yatra Online IPO will be available at a price band of ₹135-142 per share, representing a substantial discount compared to the price at which the company issued shares to one of its promoters just last year.

In December 2022, Yatra Online conducted a rights issue, raising ₹62.01 crore by offering shares to THCL Travel Holding Cyprus Ltd., a promoter, at an issue price of ₹236 per share.

Yatra Online Ltd., the parent company of Nasdaq-listed Yatra Online, Inc., was founded by Dhruv Shringi and was formerly known as Yatra Online Private Limited.

The Yatra Online IPO will consist of a fresh issuance of ₹602 crore worth of shares and an offer for sale (OFS) of up to 12.2 million shares by a promoter and an existing investor. Investors can subscribe to the IPO from September 15 to September 20.

At the upper price band, the total public float is valued at ₹775 crore, according to regulatory filings.

It’s worth noting that shares of Yatra’s closest competitor, Easy Trip Planners Ltd., which went public in March 2021 with a ₹510 crore IPO, have declined by 21% over the past year.

Yatra, founded in 2006, offers a comprehensive range of services, including flight, hotel, and bus bookings, as well as vacation packages. In contrast, EaseMyTrip primarily focuses on flight and hotel booking services.

THCL Travel Holding Cyprus Ltd., with an 88.64% stake in Yatra, plans to offload 8.89 million shares in the IPO. Additionally, investor “Pandara Trust – Scheme I Represented By Its Trustee Vistra Itcl (India) Ltd” intends to offload 4,31,360 shares, as detailed in Yatra’s draft red herring prospectus (DRHP).

Yatra Online’s other promoter, Asia Consolidated DMC Pte. Ltd. (Singapore), holds a 9.91% stake in the company.

The IPO proceeds are expected to be allocated strategically, with ₹150 crore earmarked for investments, acquisitions, and inorganic growth opportunities. Furthermore, ₹392 crore will be allocated to investments in customer acquisition and retention, technology enhancements, and other organic growth initiatives.

SBI Capital Markets Ltd., DAM Capital Advisors Ltd., and IIFL Securities Ltd. have been appointed as the book running lead managers for the IPO.

As of March 31, 2023, Yatra Online claims to have one of the largest numbers of hotel and accommodation partnerships among domestic online travel agencies in India.

The company faces competition from key rivals such as MakeMyTrip (India) Pvt Ltd., Cleartrip Pvt Ltd., Thomas Cook India Ltd., and others.

For the fiscal year 2023, Yatra reported impressive financial results, with a 92% year-on-year increase in consolidated revenue, reaching ₹380.16 crore, up from ₹198.07 crore in FY22. This growth was primarily driven by the recovery in consumer and corporate travel businesses following the impact of COVID-19. Yatra also reported a net profit of ₹7.63 crore, a significant improvement compared to the loss of ₹30.78 crore in FY22.

About Yatra Online:

Yatra Online Limited holds the position of India’s foremost corporate travel services provider, boasting a substantial portfolio of corporate clients. Furthermore, it ranks as the third-largest player in the Indian online travel industry, measured by gross booking revenue and operating revenue for Fiscal Year 2023, among the prominent OTA (Online Travel Agency) players in the country.

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