The Yatra Online IPO is now open for subscription, with the subscription window remaining active until September 20, 2023. Here are the key details:
1) Price Band: Yatra Online has set the IPO price band at ₹135 to ₹142 per equity share, with each lot consisting of 105 equity shares.
2) Anchor Investor Allocation: Yatra Online IPO garnered ₹348 crore from anchor investors on September 14, 2023.
3) IPO Reservation: The public issue has reserved at least 75% of shares for Qualified Institutional Buyers (QIBs), up to 15% for Non-Institutional Investors (NIIs), and a maximum of 10% for Retail Investors.
4) Lot Size: The lot size for Yatra IPO is 105 equity shares, with multiples of 105 equity shares thereafter.
5) Peer Comparison: Yatra Online’s listed industry peer, Easy Trip Planners Limited, has a P/E (Price-to-Earnings) ratio of 56.53.
Yatra Online IPO Details:
The Yatra Online IPO comprises a fresh issuance of shares valued at ₹602 crore and an offer for sale (OFS) of up to 12.2 million shares by a promoter and an existing investor.
The company plans to utilize the net proceeds from the offering for strategic investments, acquisitions, and inorganic expansion, as well as for general corporate purposes, customer acquisition, technology, and other organic growth initiatives.
The book running lead managers for the IPO are SBI Capital Markets Ltd, DAM Capital Advisors Ltd, and IIFL Securities Ltd, while Link Intime India Private Ltd serves as the offer’s registrar.
Yatra Online IPO Review:
According to Business Journalist Rupesh Kumar Singh, Yatra Online offers a comprehensive range of travel-related products and services to cater to the needs of both domestic and international travelers. The company provides customers with access to various tools and information for planning, researching, booking, and purchasing travel-related goods and services, both within India and abroad.
The Indian travel industry is expected to grow to ₹4,540 billion by FY28, with a 9–11% CAGR between FY23 and FY28. Factors contributing to this growth include the development of tourism infrastructure, rising income levels leading to increased discretionary spending on travel, and greater travel frequency for both business and leisure purposes.
Yatra Online, as a key player in the industry, is well-positioned to capture a significant share of this growth. Its longstanding relationships with B2B and B2C customers enable the company to target frequent and high-spending travelers, particularly urban consumers. With the online travel market share (OTA) expected to grow faster than captive players, Yatra Online’s profitability is likely to improve.
The company posted profits in FY23 and has shown strong revenue growth in the past, making it a positive prospect from a medium to long-term perspective.
Yatra Online IPO Grey Market Premium (GMP) Today:
As of now, Yatra IPO GMP in the grey market stands at ₹0, indicating that shares are trading at their issue price of ₹142 with no premium or discount in the grey market.
Please note that the grey market premium reflects investors’ willingness to pay more than the issue price and can fluctuate over time.