Juniper Hotels makes tepid market debut, shares list at 1.3% premium to IPO price
Upstox
3 min read • Updated: February 28, 2024, 12:39 PM
Summary
Juniper Hotels made a lacklustre debut on BSE also as shares listed almost flat at ₹361.20 per share against the issue price. The stock later gained around 10% to hit a high of ₹397.3 in the first hour of trade.
Juniper Hotels Ltd, which runs the Hyatt brand of luxury hotels in India, made a tepid debut in the stock market on Wednesday. The shares of the hospitality group were listed at ₹365 per share on the National Stock Exchange of India (NSE), reflecting a premium of 1.3% over the issue price of ₹360 per share.
The stock, however, witnessed some demand after the listing, and the shares gained 10% further to hit a high of ₹401.50 on NSE later at 10.50 am. Around 1.45 crore company shares changed hands in the first hour of the trade on NSE. The trade value of shares was ₹562.85 crore, while the company's market capitalisation stood at ₹ 8933.47 crore.
Juniper Hotels made a lacklustre debut on BSE also as shares listed almost flat at ₹361.20 per share against the issue price. The stock later gained around 10% to hit a high of ₹397.3 in the first hour of trade. Around 13 lakh shares traded on BSE in morning deals.
The initial public offering (IPO) of Juniper Hotels received a decent demand from investors during its subscription from February 21 to 23. The issue closed with a total subscription of 2.08 times. The ₹1,800-crore IPO comprised an entirely fresh issue of shares and no offer for sale (OFS) component.
The company has proposed to use a significant part of IPO proceeds for debt repayment. Juniper Hotels will use around ₹1,500 crore to repay the debt that has been availed by it and its subsidiary companies, Chartered Hampi Hotels and Chartered Hotels.
Juniper Hotels IPO details
During the subscription period, the Juniper Hotels IPO received bids for 6,01,14,160 equity shares compared to 2,89,47,367 on offer.
Retail investors well received the public offer. The category of retail individual investors was subscribed 1.28 times, while the qualified institutional buyers (QIBs) segment was subscribed 2.96 times. However, the non-institutional investors' (NIIs) category received a lukewarm response as the portion was subscribed to just 85%.
JM Financial, CLSA India and ICICI Securities Limited were the book-running lead managers.
The company raised ₹810 crore from the anchor investors. Ahead of the launch of the initial public offer on February 21, as many as 43 anchor investors subscribed to 2.25 crore equity shares of the company, helping the company raise ₹81 crore. The funds were issued shares at a price of ₹360 per share, which was the upper end of the price band of the IPO. Both foreign and domestic institutional investors participated in the anchor fund round.
Prominent investors were Fidelity Funds, Government Pension Fund (Norges), Schroder, Kotak Mahindra Mutual Fund, ICICI Prudential Life Insurance, Invesco, The Prudential Assurance Company, Quant Mutual Fund and HDFC Life Insurance Company.
About Juniper Hotels
Hospitality company Juniper Hotels runs seven luxury hotels and serviced apartments. It has a portfolio of a total of 1,836 room keys as of September 2023 that included luxury, upper upscale and upscale hotel properties in India. It owns the Hyatt brand of hotel properties.
In Juniper Hotels, Two Seas Holdings held a 50% stake (pre-issue), while Saraf Hotels had a 44.68% shareholding. Juniper Investments owns a 5.32% stake.