Yatra Online IPO: The initial public offering (IPO) of Yatra Online which opened for subscription on September 15 has so far received lacklustre response from investors.
The ₹775.00 crore worth Yatra Online IPO will close on Wednesday, September 20. Yatra Online is India’s one of the largest corporate travel service providers and offers integrated travel solutions to corporate clients as well as direct consumers.
In the public issue, the company has reserved not less than 75% of the shares for Qualified Institutional Buyers (QIB), 15% for Non Institutional Investors (NII), and 10% of the offer is reserved for Retail Investors.
Yatra Online IPO has been subscribed 20% in total on Monday, the second day of the bidding process. The public issue received bids for 61.45 lakh equity shares as against 3.09 crore shares on the offer, as per data available on NSE till 11:45 am.
The public issue has been subscribed 1.03 times in the retail category, and 7% in the NII category. QIBs are yet to place their bids.
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Yatra Online IPO Details
Yatra Online Ltd plans to raise ₹775 crore from its maiden public offering. 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 existing investor.
Yatra IPO opened for subscription on September 15 and will close on Wednesday, September 20. The company has already raised ₹348 crore from anchor investors on September 14, ahead of the IPO opening.
Yatra Online IPO price band has been fixed at ₹135 to ₹142 per equity share. The face value of Yatra Online shares is Re 1 each. The lot size for the public issue is 105 equity shares and the minimum investment amount required by retail investors is ₹14,910.
The company is likely to fix the basis of IPO share allotment on September 25 and initiate refunds on September 26, while credit the shares to the demat accounts of eligible allottees on September 27.
Yatra Online Ltd shares are proposed to be listed on September 29 on BSE and NSE.
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The company intends to use the net proceeds from the offering to fund strategic investments, acquisitions, and inorganic expansion, as well as general corporate purposes, investments in customer acquisition and retention, technology, and other organic growth activities.
The book running lead managers to the Yatra IPO are SBI Capital Markets Ltd, DAM Capital Advisors Ltd, and IIFL Securities Ltd, while Link Intime India Private Ltd is the IPO registrar.
Yatra Online IPO GMP today
Yatra Online IPO GMP today, or grey market premium today, is ₹0, which means shares were trading at par with their issue price of ₹142 with no premium or discount in the grey market today.
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Yatra Online IPO Review
On the financial front, Yatra Online’s revenue has grown at a CAGR of 74% from FY21-23, however, it has been posting losses on operational and bottom line levels whereas in FY23, it has turned profitable.
On the valuation front, it is trading at a PE of ~213.1x on FY23 EPS. The company operates in a highly competitive market, while seasonality in the leisure travel industry and high dependence on Air ticketing business remains as key risks, Religare Broking said in a note.
The brokerage firm remains Neutral on Yatra IPO.
