Yatra Online Limited IPO

About Company

Yatra Online, a well-known online company, has filed preliminary documents with SEBI in order to collect funds and become publicly traded in India after previously being listed on NASDAQ. The offering consists of fresh issuance of equity shares worth Rs.750 crores and a secondary sale of up to 88 lakh equity shares by THCL Travel Holding Cyprus Limited, a subsidiary of Yatra Online, Inc., representing approximately 8% of Yatra Online Limited's outstanding shares. In December 2016, Yatra Online was listed on the New York Stock Exchange. The business may explore issuing additional equity shares, including a private placement of up to Rs.145 crore, which would lower the initial issue size indirectly. The issue's book running lead managers are SBI Capital Markets Ltd, DAM Capital Advisors Ltd, and IIFL Securities Ltd.

Yatra Online, Inc. is the ultimate parent company of Yatra Online Limited, which has its headquarters in Gurugram, India, and is one of India's major corporate travel service providers, with over 700 significant corporate clients. For domestic and international air travel, domestic and international hotel bookings, holiday packages, buses, trains, in city activities, inter-city and point-to-point taxis, homestays, and cruises, the firm provides information, price, availability, and a booking option. According to the official release, the firm is India's largest platform for domestic hotels, with around 94,000 hotels and homestays contracted in approximately 1,400 locations throughout India and more than 2 million hotels worldwide. To further expand its corporate service offerings, Yatra Freight, a freight forwarding firm, was recently created.

The company promised to create a "one-stop shop" for its consumers by offering holiday packages as well as other services including visa assistance, excursions, sightseeing, performances, and events. The technological platform was created with high dependability, security, scalability, integration, and innovation in mind. We run a unique eCash loyalty programme that allows passengers who book through our platform to accrue and redeem points, when available, to increase customer loyalty and provide an incentive for the workers of our corporate clients to trade with us as B2C customers.

Yatra Online Limited IPO Objectives:

The business intends to use the net proceeds from the new offering to:

1. Strategic investments, acquisitions and inorganic growth;
2. Investment in customer acquisition and retention, technology, and other organic growth initiatives.
3. General corporate purposes. 

Why should you invest in Yatra Online Limited:

1. India ranked seventh worldwide in total tourism spending in the calendar year 2020. As a percentage of GDP, tourism spending was 6.9% in the calendar year 2019. Travel and tourism GDP fell 36.3% on year in 2020, owing to the pandemic. And numbers are only getting better post-2021.
2. Online penetration in the Indian travel market is likely at 71-72% in fiscal 2025.
3. Indian online ticketing market to grow at 9-11% CAGR between fiscals 2020 and 2025.