Juniper Hotels sets sights on Rs 1,800 Crore IPO
Juniper Hotels plans to retire existing debts and allocate the remaining capital for general business purposes
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Juniper Hotels Ltd., the hospitality giant known for its luxurious Hyatt-branded properties across India, has set its sights on the stock market. In a bold move, the company is planning an Initial Public Offering (IPO) to raise a whopping Rs 1,800 crore in capital.
Unlike some IPOs that include the sale of existing shares, Juniper Hotels' IPO will solely consist of newly issued shares. The offering will follow a book-building process, allowing the company and its underwriters to determine the share price based on market demand. In terms of allocation, at least 75% of the shares will be earmarked for large institutional investors, with up to 15% available for smaller non-institutional investors. An additional 10% of shares will be reserved for individual retail investors, providing an opportunity for a broader spectrum of investors to participate in Juniper Hotels' growth story.
Juniper Hotels is also considering a private placement of shares worth Rs 350 crore before the IPO. This pre-IPO placement could potentially reduce the number of new shares issued during the IPO itself, making it an essential development to watch.
The funds raised through the IPO, estimated to be around Rs 1,500 crore, will be put to good use. Juniper Hotels plans to retire existing debts and allocate the remaining capital for general business purposes. This financial manoeuvre will provide the company with the flexibility needed to explore new opportunities and enhance its existing portfolio of luxury hotels and serviced apartments.
Juniper Hotels Ltd. is co-owned by Saraf Hotels Limited and Two Seas Holdings Limited, an entity affiliated with Hyatt Hotels Corporation. Their impressive portfolio encompasses luxury properties in several major Indian cities, including Mumbai, Delhi, Ahmedabad, Lucknow, Raipur, and Hampi. The Grand Hyatt Mumbai Hotel and Residences, the largest hotel in India, stands as a testament to their commitment to excellence.
The decision to go public comes on the heels of an impressive financial year for Juniper Hotels. In fiscal year 2023, their revenue from operations more than doubled, soaring to Rs 666.85 crore, compared to Rs 308.69 crore the previous year. Moreover, the company managed to reduce its net loss substantially, decreasing from Rs 188.03 crore in fiscal year 2022 to just Rs 1.5 crore in fiscal year 2023. A robust EBITDA margin in fiscal year 2023 underscores their financial stability and potential for growth.
Leading financial institutions are overseeing Juniper Hotels' IPO. JM Financial Limited, CLSA India Private Limited, and ICICI Securities Limited are managing the offering, while KFin Technologies Limited will handle the administrative aspects.
Once the IPO is successfully completed, Juniper Hotels Ltd.'s shares are expected to be listed for trading on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), offering investors a chance to be part of a dynamic and growing player in the Indian hospitality sector.
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