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Juniper Hotels Limited, a luxury hotel development and ownership company IPO scheduled to commence on February 21. The offering will remain open for three days, concluding on February 23. Before applying for the IPO, let’s conduct a quick analysis.
The total IPO issue size is Rs 1,800 crore, which is solely a fresh issue with no offer for sale. This absence of an offer for sale is a positive aspect for investors. The IPO price band set by the company is Rs 342 to Rs 360 per share, with a face value of Rs 10 each. The lot size is 40 shares, and the IPO will debut on both NSE and BSE. Based on the current valuation, the company’s present valuation amounts to Rs 8,010 crore.
The grey market premium can indicate the market’s perception of the IPO’s potential performance. It is the price at which shares are traded before they get officially listed on the stock exchange. According to the sources, the GMP of Juniper Hotels is around Rs 8 per share, bringing the estimated listing price of the stock to around Rs 368, which is 2.22% higher than the IPO price. However, this GMP is not fixed and will keep changing. The final issue price will only be known once the stock gets listed on the bourses.
The company plans to use the net proceeds to pay off its outstanding debt, with the intention to allocate approximately Rs 1,500 crore out of the total IPO issue of Rs 1,800 crore. This strategic move is expected to result in saving around Rs 170 crore in the company’s annual interest expenses, ultimately contributing to the company’s ability to report a positive PAT as per the management. The remaining Rs 300 crore will be utilised for general corporate purposes.
| Particulars | 30-Sep-23 | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Revenue | 337.43 | 717.29 | 343.76 | 192.85 |
| Profit After Tax | -26.5 | -1.5 | -188.03 | -199.49 |
| Net Worth | 859.67 | 354.51 | 356.37 | 543.9 |
| Reserves and Surplus | 687.17 | 210.81 | 212.67 | 400.2 |
| Total Borrowing | 2,252.75 | 2,045.61 | 2,121.81 | 1,830.48 |
| Assets | 3,837.83 | 3,020.27 | 3,069.86 | 3,055.54 |
| Amount in Rs Cr | ||||
| Particulars | 30-Sep-23 | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Average Room Rate (Rs Cr) | 1,013.90 | 987.51 | 622.10 | 565.60 |
| Average occupancy rate | 74.84% | 75.74% | 53.76% | 34.23% |
| Number of Hotels & Serviced Apartments | 7.00 | 4.00 | 4.00 | 4.00 |
| Debt to Equity | 2.61 | 5.74 | 5.91 | 3.32 |
| EBITDA Per Room (Rs Cr) | 886.17 | 2,292.76 | 721.67 | 157.92 |
| EBITDA Margin % | 36.92 | 44.94 | 29.52 | 11.51 |
Juniper Hotels Limited is a luxury hotel development and ownership company. As of September 30, 2023, the company operates seven hotels and serviced apartments with a total of 1,836 rooms. The company was incorporated in September 1985.
The company’s hotels and serviced apartments in Mumbai, Delhi, Ahmedabad, Lucknow, Raipur, and Hampi are landmarks in the luxury, upper upscale, and upscale categories. Grand Hyatt Mumbai Hotel and Residences is India’s largest luxury hotel, while Hyatt Regency Lucknow and Hyatt Regency Ahmedabad are the biggest upper upscale hotels in their respective markets.
Juniper Hotels is co-owned by Saraf Hotels Ltd and Two Seas Holdings Ltd, an affiliate of Hyatt Hotels Corporation, forming a strategic partnership between a hotel developer and an international hospitality company.
Currently, the company has 116 serviced apartments in Grand Hyatt Mumbai and 129 serviced apartments in Hyatt Delhi.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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