The Yatra IPO Price Alert.Yatra’s IPO Price Range Fixed at ₹135-142 Per Share, Offering a Significant Discount to Previous Share Deal
Mumbai: Yatra Online Ltd., the company specializing in online travel booking services, has unveiled a pricing range of ₹135-142 per share for its forthcoming initial public offering (IPO). This pricing decision represents a substantial reduction when compared to the price at which the company issued shares to one of its promoters just last year.
In an official statement, Yatra Online disclosed that on December 10, 2022, it successfully sold shares amounting to ₹62.01 crore to THCL Travel Holding Cyprus Ltd., one of its promoters, as part of a pre-IPO placement. These shares were issued at an offering price of ₹236 each.
Yatra Online, Inc., which is listed on Nasdaq and was founded by Dhruv Shringi, serves as the parent company of Yatra Online Ltd. (formerly known as Yatra Online Private Limited).
- The IPO comprises two primary components: a fresh issuance of shares valued at ₹602 crore and an offer for sale (OFS) involving up to 12.2 million shares by a promoter and an existing investor. Subscriptions for the IPO are scheduled to be open from September 15 to September 20.
According to regulatory filings, the total public float at the upper price band is estimated to be ₹775 crore.
Over the past year, the shares of Yatra’s nearest competitor, Easy Trip Planners Ltd., which conducted a ₹510 crore IPO in March 2021, have witnessed a decline of 21%.
Established in 2006, Yatra 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 bookings.
The company has allocated ₹150 crore from the IPO proceeds for strategic investments, acquisitions, and inorganic growth. Additionally, ₹392 crore may be utilized for investments in customer acquisition and retention, technology enhancements, and other organic growth initiatives.
As of March 31, 2023, Yatra Online claims to have one of the most extensive networks of partnerships with hotels and accommodation providers among prominent domestic online travel agencies.
Key competitors for the company include MakeMyTrip (India) Pvt Ltd., Cleartrip Pvt Ltd., Thomas Cook India Ltd., among others.
For the fiscal year 2023, Yatra IPO Price Alert reported a remarkable 92% year-on-year increase in consolidated revenue, reaching ₹380.16 crore, compared to ₹198.07 crore in FY22. This growth was primarily driven by the recovery in its consumer and corporate travel businesses following the diminishing impact of the COVID-19 pandemic. The company achieved a net profit of ₹7.63 crore, marking a significant improvement compared to the ₹30.78 crore loss recorded in FY22.