Yatra Online IPO booked 32% on day 2; check grey market premium, other details
Yatra Online, which was incorporated in 2005, provides information, pricing, availability, and booking facilities for domestic and international customers.
- Sep 19, 2023,
- Updated Sep 19, 2023 2:42 PM IST
The initial public offering (IPO) of Yatra Online was subscribed only 31 per cent on the second day of the bidding process, which was majorly led by retail investors. The Rs 775-crore issue, which had opened for bidding on Friday, September 15, was booked 12 per cent by the end of day one. Yatra Online is offering its shares in the price band of Rs 135-142 apiece with a lot size of 105 equity shares and its multiples thereafter. Bidding for the issue will conclude for bidding on Wednesday, September 20. However, the company has seen negligible activity in the grey market. Last heard, the company was commanding no grey market premium according to multiple sources. It is interesting to note that amid the busy IPO season at Dalal Street, only a handful companies are not commanding any premium in the unofficial market. However, the company has one more day to sail through. According to the data from BSE, the investors made bids for 94,65,960 equity shares, or 32 per cent, compared to the 3,09,42,356 equity shares offered for the subscription on Monday, September 18. The quota for retail investors was booked 1.34 times. The portion for non-institutional investors and qualified institutional bidders (QIBs) was subscribed nine per cent and six per cent, respectively. Brokerage firms have a mixed view on the issue. Tt has attracted both 'subscribe' and 'avoid' ratings from the analysts. A few as positive on the issue citing industry tailwinds, improving the business and scalability. However, others are skeptical over the highly competitive market, seasonality of the travel industry and high dependence on air ticketing business. The company is India's largest corporate travel service provider enjoying third largest status on the basis of its gross booking and operating revenues for FY23, said SMC Global. "However, as the issue looks expensive, an investor who wishes to bet on the booming travel industry can look at other choices available in the secondary market in the segments like hotels," it said. The company has created a distinctive 'go-to-market' approach in both B2B and B2C segments indicative of a large addressable market. With a heightened focus on the high margin corporate business, we expect the company to display strong bottom-line growth in the years to come, said Arihant Capital Markets. "The B2B business is expected to grow at a 5-year CAGR of 15 per cent for the next 5 years. The offer is made at around 30.9 times post-IPO EV/EBITDA at the upper price band. We recommend investors subscribe for listing gains," it added. Yatra Online, which was Incorporated in 2005, provides information, pricing, availability, and booking facilities for domestic and international customers. It provides domestic and international air ticketing on airlines across the globe, along with bus ticketing, rail ticketing, cab bookings, and other services. Yatra Online mopped up Rs 348.75 crore by allocation of 2,45,59,860 equity shares at a price of Rs 142 per share to 33 anchor investors. The listed companies included Morgan Stanley, Goldman Sachs, Societe Generale, BNP Paribas Arbitrage, Elara India Opportunities Fund, Whiteoak Capital, Quantum-State Investment Fund and various domestic mutual funds and insurance firms. The company has reserved 75 per cent of the net offer for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will get 15 per cent of the offering. Remaining 10 per cent of the offer shall go to retail investors. SBI Capital Markets, IIFL Securities and DAM Capital Advisors are the lead managers to the issue, while Link Intime India has been appointed as the registrar. Shares of the company are likely to be listed on both BSE and NSE.Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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The initial public offering (IPO) of Yatra Online was subscribed only 31 per cent on the second day of the bidding process, which was majorly led by retail investors. The Rs 775-crore issue, which had opened for bidding on Friday, September 15, was booked 12 per cent by the end of day one. Yatra Online is offering its shares in the price band of Rs 135-142 apiece with a lot size of 105 equity shares and its multiples thereafter. Bidding for the issue will conclude for bidding on Wednesday, September 20. However, the company has seen negligible activity in the grey market. Last heard, the company was commanding no grey market premium according to multiple sources. It is interesting to note that amid the busy IPO season at Dalal Street, only a handful companies are not commanding any premium in the unofficial market. However, the company has one more day to sail through. According to the data from BSE, the investors made bids for 94,65,960 equity shares, or 32 per cent, compared to the 3,09,42,356 equity shares offered for the subscription on Monday, September 18. The quota for retail investors was booked 1.34 times. The portion for non-institutional investors and qualified institutional bidders (QIBs) was subscribed nine per cent and six per cent, respectively. Brokerage firms have a mixed view on the issue. Tt has attracted both 'subscribe' and 'avoid' ratings from the analysts. A few as positive on the issue citing industry tailwinds, improving the business and scalability. However, others are skeptical over the highly competitive market, seasonality of the travel industry and high dependence on air ticketing business. The company is India's largest corporate travel service provider enjoying third largest status on the basis of its gross booking and operating revenues for FY23, said SMC Global. "However, as the issue looks expensive, an investor who wishes to bet on the booming travel industry can look at other choices available in the secondary market in the segments like hotels," it said. The company has created a distinctive 'go-to-market' approach in both B2B and B2C segments indicative of a large addressable market. With a heightened focus on the high margin corporate business, we expect the company to display strong bottom-line growth in the years to come, said Arihant Capital Markets. "The B2B business is expected to grow at a 5-year CAGR of 15 per cent for the next 5 years. The offer is made at around 30.9 times post-IPO EV/EBITDA at the upper price band. We recommend investors subscribe for listing gains," it added. Yatra Online, which was Incorporated in 2005, provides information, pricing, availability, and booking facilities for domestic and international customers. It provides domestic and international air ticketing on airlines across the globe, along with bus ticketing, rail ticketing, cab bookings, and other services. Yatra Online mopped up Rs 348.75 crore by allocation of 2,45,59,860 equity shares at a price of Rs 142 per share to 33 anchor investors. The listed companies included Morgan Stanley, Goldman Sachs, Societe Generale, BNP Paribas Arbitrage, Elara India Opportunities Fund, Whiteoak Capital, Quantum-State Investment Fund and various domestic mutual funds and insurance firms. The company has reserved 75 per cent of the net offer for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will get 15 per cent of the offering. Remaining 10 per cent of the offer shall go to retail investors. SBI Capital Markets, IIFL Securities and DAM Capital Advisors are the lead managers to the issue, while Link Intime India has been appointed as the registrar. Shares of the company are likely to be listed on both BSE and NSE.Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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