Yatra Online IPO price band: Yatra Online fixes price band at Rs 135-142 for its Rs 775 crore-IPO

Travel services provider Yatra Online on Tuesday fixed the price band at Rs 135-142 per equity share for its upcoming IPO. The issue will open on Friday, September 15 for subscription.

At the upper end, the company aims to raise around Rs 775 crore and the implied post-issue market cap will be Rs 2,228 crore.

The IPO, which closes on September 20, comprises a fresh equity issue worth Rs 602 crore and an offer for sale (OFS) of up to 1.21 crore shares.

Ahead of the issue opening, the company in consultation with the lead bankers had undertaken a pre-IPO placement of Rs 62 crore via rights issue. It had allotted 26.27 lakh shares to its promoter THCL Travel Holding Cyprus.

Investors can bid for a minimum of 105 equity shares and in multiples thereafter. About 75% of the offer is reserved for qualified institutional buyers, 15% for non-institutional investors and 10% for retail investors.

Proceeds from the fresh issue will be utilised to the tune of Rs 150 crore for strategic investments, acquisitions, and inorganic growth, and Rs 392 crore for investment in customer acquisition and retention, technology, and other organic growth initiatives and general corporate purposes.

Yatra Online provides access to hotels, homestays, and other accommodations through its platform, and has the largest number of hotel and accommodation tie-ups amongst key domestic OTA players.The company competes with other online and offline travel agencies such as MakeMyTrip, Cleartrip, Easy Trip Planners, and Thomas Cook India among others.

For FY23, consolidated revenue from operations increased to Rs 380 crore, primarily due to recovery in both its consumer and corporate travel business due to the diminishing impact of Covid-19.

In the same period, the company generated a profit of Rs 7.63 crore as compared to a loss of Rs 30.7 crore in the previous fiscal.

SBI Capital Markets, DAM Capital Advisors and IIFL Securities are the book-running lead managers and Link Intime India is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.

The share allotment for the issue will likely be finalised by September 25, and the listing is proposed on September 30.

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