Corporate travel service provider Yatra Online is set to launch its initial public offering on September 15. It comprises fresh issuance of shares worth Rs 602 crore and an offer-for-sale (OFS) of 1,21,83,099 equity shares by the promoter and an investor.
Promoter THCL Travel Holding Cyprus will offload 17,51,739 equity shares, while investor Pandara Trust – SCHEME I, represented by its trustee Vistra ITCL (India), plans to exit the company by selling its entire 4,31,360 shares through the OFS.
The third largest online travel company has raised Rs 62.01 crore from a rights issue and allotted 26,27,697 shares to THCL at an issue price of Rs 236 each, which is a part of the pre-IPO placement.
Hence, the size of the fresh issue of Rs 750 crore has been reduced by Rs 148 crore, including the pre-IPO placement of Rs 62.01 crore, and accordingly, the fresh issue is Rs 602 crore.
The price band will be announced by the company in the next few days.
The company will utilise the net fresh issue proceeds for strategic investments, acquisitions and inorganic growth amounting to Rs 150 crore, and investment in customer acquisition and retention, technology, and other organic growth initiatives, estimated at a cumulative sum of Rs 392 crore. The remaining money will be used for general corporate purposes.
Promoters THCL Travel Holding Cyprus holds 88.91 percent stake in Yatra Online and Asia Consolidated DMC Pte Ltd 9.68 percent, while Network18 Media & Investments, and Reliance Retail, subsidiaries of Reliance Industries, are the public shareholders in the company with 0.95 percent and 0.08 percent stake, respectively.
The public issue will close on September 20, while the anchor book will open for a day on September 14.
Yatra Online claimed to be the India’s largest corporate travel services provider in terms of the number of corporate clients and the third largest online travel company in India among key OTA (online travel agency) players in terms of gross booking revenue and operating revenue, for FY23. It has the largest number of hotel and accommodation tie-ups among key domestic OTA players of over 21,05,600 tie-ups, as of March FY23.
SBI Capital Markets, DAM Capital Advisors, and IIFL Securities are the merchant bankers to the issue, while Link Intime India is the registrar.
Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.