Online travel aggregator Yatra Online is gearing up to launch its initial public offering (IPO) on September 15.
The IPO will consist of a fresh issue of shares amounting to INR 602 Cr and an offer-for-sale (OFS) of 1,21,83,099 equity shares.
While 75% of the issue will be reserved for qualified institutional bidders, 15% will be reserved for non-institutional investors. The remaining 10% will be set aside for retail investors.
The fresh issue size of INR 602 Cr represents a reduction from the initial plan of INR 750 Cr. This reduction incorporates a pre-IPO placement of approximately INR 62 Cr. This pre-IPO placement involved the issuance of 26,27,697 equity shares at a price of INR 236 per equity share to one of its promoters, THCL, through a rights issue.
The company plans to use INR 150 Cr from the proceeds of the fresh issue for strategic investments, acquisitions, and inorganic growth, while INR 392 Cr is earmarked for investments in customer acquisition and retention, technology development, and other organic growth initiatives.
Yatra operates a traveltech platform that allows users to compare prices as well as book domestic and international air tickets. It also offers bus, rail and cab bookings as well as other ancillary services within the country.
Yatra Online filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in March 2022. In November last year, it received the market regulator’s nod for the IPO.
At the time of filing DRHP, Yatra said it expects to gain access to Indian investors with the IPO. As Yatra is listed on NASDAQ, many Indian institutional and retail investors have not been able to invest in the traveltech company because of regulatory restrictions.
Following a period of stagnation in the IPO market for tech startups in 2022, which persisted into the initial months of 2023, a reversal is expected in the second half of the year.
Blockchain and IT development startup Yudiz Solutions recently listed on the NSE SME platform. Drone startup ideaForge also made its debut on Indian stock exchanges in July with a remarkable 94% premium over the issue price. Beauty ecommerce unicorn Mamaearth’s parent entity Honasa Consumer Ltd is also reportedly mulling going public in November this year.
According to an EY report, the second quarter of 2023 saw a total of 310 IPOs globally, raising $39 billion. While these figures represented a slight decline of 3% and 5% year-on-year (YoY), respectively, they suggest a resurgence in IPO activity.
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