Shares of the online travel company listed on NSE at Rs 127, a discount of 10.2% to the issue price of Rs 142, while on BSE, the stock debuted at Rs 130, a discount of 8.4%.
However, at 11.57 a.m., the stock was trading 5.3% higher at Rs 136.9 on BSE.
“As expected, the Yatra Online IPO saw a tepid listing today and is trading close to the issuance price of Rs 142 per share. However, we believe that the strong growth in the tourism industry will help the share of the online travel market (OTA) to increase at a faster pace than captive players,” Prathamesh Masdekar, Research Analyst at StoxBox, said.
“With a technology-driven business which would see benefits of operating leverage coming into play with a larger volume of business, we expect an improvement in the company’s profitability going forward. We, therefore, remain positive on the company and recommend investors who have received allotment to hold shares from a medium to long-term perspective,” Prathamesh added.
Yatra Online offers a comprehensive range of travel and travel-related products and services catering to the needs of passengers travelling domestically, as well as travelling to and from international destinations.
The company provides customers with various tools and information that they need to research, plan, book and purchase travel products and services in India as well as outside India.Meanwhile, Shivani Nyati, Head of Wealth at Swastika Investmart, said, “The YOL’s shares witnessed a negative listing. This is likely due to the company’s high P/E valuation, its reliance on the airline ticketing business, and the competitive nature of the travel industry. Overall, YOL is a risky investment, and investors who receive an allotment of this IPO should consider exiting their position.”
Backed by retail and QIB investors, the initial public offering of Yatra Online was subscribed 1.61 times on the last day of bidding. The issue received bids of 4,98,92,430 shares against the offered 3,09,42,356 equity shares.
For the year ended March 2023, the company clocked a revenue growth of 81% year-on-year (YoY) to Rs 397 crore, while profit stood at Rs 7.6 crore compared with a loss of Rs 30.7 crore a year ago.
SBI Capital Markets, DAM Capital Advisors and IIFL Securities acted as the book-running lead managers and Link Intime India was the registrar to the offer.
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