Juniper Hotels Limited

About Juniper Hotels Limited  Incorporated in 1985, Juniper Hotels Limited is a luxury hotel development and ownership company and the largest owner of “Hyatt” affiliated hotels in India. As of 30 September 2023, the company operated seven hotels and serviced apartments with 1,836 rooms.  It is present across the luxury, upper upscale and upscale categories of hotels in Mumbai, Delhi, Ahmedabad, Lucknow, Raipur and Hampi. Juniper Hotels benefits from its longstanding brand tie-up with Hyatt Hotels Corporation (HHC), its understanding of the hospitality market, operational excellence, and shareholder experience.  The company identifies strategic locations to develop its hotels, considering factors like economic potential, target customers and branding. After these stages, the company uses its expertise to make its assets operational to move to a revenue generation phase. Juniper Hotels is jointly held by Saraf Hotels and its affiliate, Juniper Investments and Two Seas Holdings - an indirect subsidiary of HHC (Hyatt Hotels Corporation). It benefits from the longstanding partnership of over 40 years between Saraf Hotels and HHC.  HHC is a global hospitality company with a portfolio of 1,310 hotels and 3.13 lakh rooms, across full service hotels and resorts, all-inclusive resorts, select service hotels, lifestyle hotels and other properties, as of 30 September 30 2023. Juniper Hotels owns 19.6% of Hyatt group affiliated hotel rooms and apartments in India as of 30 September 2023.  It currently owns 12% of the total keys of the luxury room inventory in Mumbai and New Delhi; and 26% and 52% of the total keys of the upper upscale inventory in Ahmedabad and Lucknow, respectively.  It saw a CAGR rise of 58% in its revenue from operations between FY21 and FY23 and 14% between Q2FY23 and Q2FY24. Meanwhile, Juniper Hotels revenue per available room grew substantially from ₹1,936 in 2021 to ₹7,479 in 2023. Despite this, the company has consecutively experienced losses between FY21 and Q2FY24. However, the hotel sector’s GDP contribution is estimated to increase from $ 40 billion in 2022 to $ 68 billion by 2027, which could benefit the company.  And now, Juniper Hotels Limited is coming out with its initial public offer (IPO). The IPO will be a fresh issue, and the money raised will be utilised for repayment or prepayment of borrowings and general corporate purposes. Its shares will be listed on the NSE and the BSE.  Here are key details about the Juniper Hotels Limited IPO:     Company Name  Juniper Hotels Limited   Company Type  Private    Company Established On  1985   Juniper Hotels Limited IPO Opening Date  February 21, 2024    Juniper Hotels Limited IPO Closing Date  February 23, 2024   Juniper Hotels Limited IPO Allotment Status  26th February 2024    Credit of Shares to the Demat Account  27th February 2024   Juniper Hotels Limited IPO Listing Date  28th February 2024    Juniper Hotels Limited IPO Face Value  ₹10per share   Juniper Hotels Limited IPO Lot Size  40 Shares    Juniper Hotels Limited IPO Issue Size  ₹1,800.00 Cr   Juniper Hotels Limited IPO to be Listed on  BSE, NSE    Juniper Hotels Limited IPO Price band  ₹342 to ₹360 per share        Financial snapshot     Particulars  FY21  FY22  FY23  Q2FY24    Revenue  ₹ 166 crore  ₹ 308 crore  ₹ 666 crore  336    Net Profit/Loss  ₹ -199 crore  ₹ -188 crore  ₹ -1.4 crore  -26.2              Here’s a quick look at Juniper Hotels Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   Expertise in site selection at locations with high barriers to entry due to the land parcels being difficult to obtain while carrying high costs and associated development risks.  The company has a long standing partnership with Hyatt of over 40 years dating back to the opening of the first Hyatt hotel in India, namely, Hyatt Regency, Delhi, in 1982.  Backed by the strong parentage of the Saraf Group, which has developed 12 hotels and serviced apartments across nine cities and continues to own 11 hotels and serviced apartments comprising 2,936 keys in important locations in India and Nepal as of 30 September 2023.  Robust asset management capabilities.  Increasing returns by having multiple revenue streams and complementary offerings such as serviced apartments, restaurants, MICE (Meetings, Incentives, Conferences and Exhibitions) services and award winning F&B offerings.  Juniper Hotels is well positioned to benefit from industry trends as India is estimated to have an urban population of 543 million by 2025 which might create demand for upper tier hotels in India.   Risks and threats   Has incurred consecutive losses between FY21 and Q2FY24.  Operates in a capital intensive industry and had total borrowings of ₹2,252 crore as of 30 September 2023.  Its recently acquired and wholly owned subsidiary, CHPL, had a total outstanding borrowing of ₹169 crore as of 30 September 2023.  A significant part of the company's revenue comes from hotels situated in Mumbai and New Delhi. Hence, any uncertainty in these locations, including demand reduction and increased competition, could impact overall revenue.  All its hotels and serviced apartments operate under the Hyatt brands, but on a nonexclusive basis. Hence if the agreement is terminated it could adversely impact the company’s cash flows.  It operates in a competitive hospitality industry, facing increased competition from budget hotels, internet-based homestays, and hostel aggregators.  Subject to seasonal and cyclical variations. The company generally has higher revenue in the second half of each fiscal year. Hence, due to seasonality, sales and revenue could be impacted.           Juniper Hotels Limited IPO details  |Juniper Hotels Limited IPO date  According to the offer document filed by the company with the SEBI, the Juniper Hotels IPO’s opening date – in other words, the Juniper Hotels IPO launch date – will be 21st February 2024. The Juniper Hotels IPO closing date is 23rd February 2024. After this, investors will be updated about the allotment status on 26th February 2024.  Investors, who have been allotted shares, can expect them to be credited to their demat account on 27th February 2024. The Juniper Hotels IPO listing date is 28th February 2024. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE.  |Juniper Hotels Limited IPO Price Band  The IPO is a fresh issue. The Juniper Hotels IPO price band has been set between ₹342 and ₹360 per share. Interested investors can choose a price within this band to apply for the IPO.  The Juniper Hotels IPO listing price will be determined on 28th February 2024. The listing price is the price at which a company’s shares debut on the stock exchanges  |Juniper Hotels Limited IPO Lot size  The Juniper Hotels IPO details have been declared. The Juniper Hotels IPO lot size is set at 40 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Juniper Hotels IPO issue size is approx ₹1,800 crore.           How to pre-apply for the Juniper Hotels Limited IPO?  You can pre-apply for the Juniper Hotels Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Juniper Hotels Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Juniper Hotels Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the Juniper Hotels Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Juniper Hotels Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Juniper Hotels Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Juniper Hotels Limited IPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the Juniper Hotels Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Juniper Hotels Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the Juniper Hotels Limited IPO  To apply for the Juniper Hotels Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the Juniper Hotels Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Juniper Hotels Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.