Juniper Hotels IPO gets lukewarm response from investors; issue subscribed 12% on Day 1

The initial public offering (IPO) of luxury hotels developer Juniper Hotels opened to a subdued response from investors on Wednesday, February 21.

Juniper Hotels IPO was subscribed only 12% by the end of the first day while the retail investors segment received the highest bids. According to the NSE data, the public issue received bids for 32,43,400 shares against 2,89,47,367 equity shares on offer.

The retail investors segment was booked 52% while the non-institutional investors (NIIs) segment was subscribed only 6% on the first day. The retail investors submitted bids for a total of 27.51 lakh shares compared to 52.63 lakh shares reserved for the segment. On the other hand, NIIs segment saw biddings for a total of 4.92 lakh shares against 78.94 lakh shares set aside for the category.

Of the total 2,89,47,367 equity shares on offer, 75% has been reserved for Qualified Institutional Buyers (QIBs), 15% for non-institutional investors (NIIs) and the remaining 10% for retail individual investors (RII).

Juniper Hotels operates luxury hotel properties under the Hyatt brand.

Juniper Hotels IPO dates

The Juniper Hotels IPO subscription will remain open from February 21 to February 23. The allotment of shares for the public issue is expected to be finalised on Monday, February 26. Credit of shares into the demat account of the allottees is likely to be done on Tuesday, February 27, along with refunds for unsuccessful bidders. Juniper Hotels shares are likely to be listed on BSE and NSE on February 28.

Juniper Hotels IPO issue size, price band and other details

Juniper Hotels IPO comprises entirely a fresh issue of shares aggregating to ₹1,800 crore. There is no offer for sale (OFS) component. The Juniper Hotels price band has been fixed at ₹342 to ₹360 per share for the public issue.

Retail investors can submit bids in Juniper Hotels IPO with a minimum lot size of 40 shares, aggregating to ₹14,400, and multiples thereof. The maximum subscription amount for Juniper Hotels IPO for retail investors is capped at ₹2 lakh. KFin Technologies Limited is the registrar for the IPO. Brokerages CLSA India Private Limited, JM Financial Limited and ICICI Securities Limited have been appointed as the book running lead managers.

Proceeds from Juniper Hotels IPO will be used by the company for repayment of certain debts and financing of its recent acquisitions (CHPL and CHHPL) amounting to approximately ₹1,500 crore. Additionally, the remaining money raised will also be used for general corporate purposes.

Ahead of opening of the IPO for subscription, the company raised ₹810 crore from anchor investors on February 20. The marquee investors in this round included the Prudential Assurance Company, HSBC Global Investment Funds, Fidelity Funds, Government Pension Fund Global, Carmignac Portfolio, Schroder International, GAM Multistock, Goldman Sachs, Societe Generale and Nedgroup Investment Funds, Marshall Wace Investment Strategies, and Natixis International Funds. About Juniper Hotels

Juniper Hotels is jointly owned by Saraf Hotels Limited and Two Seas Holdings Limited, an affiliate of Hyatt Hotels Corporation, an international hospitality company. Hyatt, through Two Seas Holdings Limited, owns half of Juniper Hotels. As of September 30, 2023, the company's hotel portfolio includes seven hotels and serviced apartments across Delhi, Mumbai, Ahmedabad, Lucknow, Raipur and Hampi.