Today, Yatra Online Limited, a company offering comprehensive information, pricing, availability, and booking services for both domestic and international customers, made its debut on the Indian stock market at a discounted price.
It opened at Rs 130 per share, reflecting an 8.45% decrease from the issue price on the BSE. Meanwhile, on the NSE, the stock began trading at Rs 127.50, marking a 10% decrease from its initial public offering (IPO) price of Rs 142 per share.
As of the current moment, the stock is trading at Rs 136 on the BSE, with intraday highs and lows reaching Rs 137.75 and Rs 127.40, respectively. The company’s current market capitalization stands at Rs 2,138 crore.
Utilizing the Proceeds
The company has outlined its intentions for utilizing the net proceeds generated from the IPO. These funds will be allocated towards strategic investments, acquisitions, and other inorganic growth opportunities. Additionally, investments will be made in activities such as customer acquisition and retention, technology enhancements, and various organic growth initiatives. A portion of the proceeds will also be allocated for general corporate purposes.
SBI Capital Markets Limited, Dam Capital Advisors Ltd (formerly IDFC Securities Ltd), and IIFL Securities Ltd acted as the book-running lead managers of the Yatra Online IPO, with Link Intime India Private Ltd serving as the registrar for the issue.
Established in 2005, Yatra Online Limited offers a wide range of information, pricing, availability, and booking services to domestic and international customers. Its services encompass domestic and international air ticketing, bus and rail ticketing, cab reservations, and supplementary services within India.
The company also facilitates bookings for a vast array of accommodations, including hotels and homestays, boasting a portfolio of approximately 105,600 hotels located in 1,490 cities and towns across India as of Fiscal 2023. Furthermore, it extends its services to cover more than two million hotels worldwide, accessible through its website, mobile applications, corporate SaaS platform, and other related platforms. Yatra Online holds the distinction of being India’s largest platform for domestic hotels. Recently, the company expanded its corporate service portfolio by launching Yatra Freight, a freight forwarding business, demonstrating its commitment to diversify its offerings.
On September 20, 2023, the final day of the IPO window, the IPO garnered a subscription rate of 1.66 times. The public issue received a decent response, with the retail category being subscribed 2.19 times, the QIB category achieving a subscription rate of 2.10 times, and the NII category reaching a subscription rate of 0.43 times.
The company attracted Rs 348.75 crore from various anchor investors by allotting 2.45 crore equity shares at Rs 142 per share. The lock-in period for these anchor investors extends until February 5, 2024.
The IPO price range was set between Rs 135 and Rs 142, with a face value of Rs 10 per share and a lot size of 105 shares. The total size of the company’s IPO was Rs 775 crore, and the final share issue price was fixed at Rs 142 each.
Here’s a snapshot of the company’s financial performance:
|Particulars||FY21 (Rs Cr)||FY22 (Rs Cr)||FY23 (Rs Cr)|
|Net Profit / (Loss)||-118.86||-30.76||7.63|
Investors who were initially seeking listing gains but were disappointed due to the stock’s discount listing may consider booking their positions, especially given the current market conditions. The broader indices have retraced from their all-time highs and are testing support levels.
However, investors with a higher risk appetite might opt to hold the shares for the medium to long term, which could prove beneficial. It’s essential to note that the company reported only single-digit profits in FY23, following two consecutive years of losses. It makes sense for each investor to take the decision that best aligns with his/her investment goals and risk tolerance.
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.