Juniper Hotels IPO: ₹1,800 crore issue opens on February 21, check key details

The primary market is buzzing with as many as 9 companies hitting the capital market with their initial public offerings (IPOs) so far in February. Luxury hotel developer Juniper Hotels is the latest company to join the IPO bandwagon.

The Juniper Hotels IPO subscription will open from February 21 to 23. Juniper Hotels operates a luxury hotel chain under the Hyatt brand. The company's portfolio includes seven luxury hotels and serviced properties across India.

Juniper Hotels aims to raise ₹1,800 crore through the IPO.

Could this IPO signal an upcoming lucrative opportunity for the investors interested in the hospitality industry? Let’s take a look at important details about the newly announced IPO:

Juniper Hotels IPO: Issue size and offer details

The IPO is going to be a fresh issue in its entirety without any offer for sale (OFS) component. Out of the total equity shares, 75% will be reserved for Qualified Institutional Buyers (QIBs), 15% for non-institutional investors (NIIs) and the remaining 10% for retail investors.

The company may consider a further issue on a private placement basis for cash consideration amounting to ₹350 crore. In case this move is executed and completed, the fresh issue size through the IPO will be reduced.

Juniper Hotels IPO Date

The stock will be listed on both BSE and the National Stock Exchange of India (NSE). The Juniper Hotels IPO share allotment is expected to be finalised by February 26. The IPO is expected to be listed on the stock exchanges on February 28.

Juniper Hotels IPO purpose

The funds raised from the IPO will be used for repayment of certain debt obligations of the company and its recent acquisitions (CHPL and CHHPL) amounting to approximately ₹1,500 crores, according to the company. The remaining funds will be utilised for general corporate purposes.

About Juniper Hotels and financials

Juniper Hotels is jointly owned by Saraf Hotels Limited and Two Seas Holdings Limited. Two Seas Holdings Limited is an affiliate of Hyatt Hotels Corporation, a well-known international hospitality entity. Through Two Seas Holdings Limited, Hyatt owns half of Juniper Hotels. As of September 30, 2023, Juniper Hotels operated 1,836 hotel keys in India that are affiliated with Hyatt.

The hotel portfolio of the company comprises seven hotels and serviced apartments as of September 30, 2023. These hotels and serviced apartments are located across Delhi, Mumbai, Lucknow, Ahmedabad, Hampi and Raipur.

The company’s revenue from operations stood at ₹666.85 crore for FY23 and at ₹308.69 crore for FY22, translating to a YoY increase of 116.03%. As for the bottom line, the company has incurred a net loss of ₹1.5 crore in FY23 as compared to a net loss of ₹188.03 crore in FY22.

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