Year 2022, has been a year of IPOs and guess what? There is one more around the corner. This time around, it is Yatra!
Draft papers have been filed by leading travel services provider Yatra Online Ltd with markets regulator SEBI. Yatra is planning its IPO(Initial Public Offering) which includes a fresh issue of shares worth up to Rs 750 crore. An offer for sale (OFS) of up to 93,28,358 equity shares would be a part of the IPO.
its IPO(Initial Public Offering) which includes a fresh issue of shares worth up to Rs 750 crore. An offer for sale (OFS) of up to 93,28,358 equity shares would be a part of the IPO.
Till now 10 IPOs have been launched which includes companies like Vedant Fashions, Adani Wilmar, AGS Transact, Fabino Life Sciences, Quality RO Industries etc.
But before we dive into the details of the IPO, let’s see what exactly is an IPO.
What Is An IPO?
An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance. An IPO allows a company to raise capital from public investors. The transition from a private to a public company can be an important time for private investors to fully realize gains from their investment as it typically includes a share premium for current private investors.
The company, according to the Draft Red Herring Prospectus (DRHP), plans to utilise the net proceeds from the fresh issue for strategic investments, acquisitions and inorganic growth and investment in customer acquisition and other organic growth initiatives. The proceeds would also be utilised for general corporate purposes.
The parent of Yatra Online Ltd, Yatra Online Inc, is listed on the NASDAQ.
OFS Details
The OFS(Offer For Sale) will comprise the sale of up to 88,96,998 equity shares by THCL Travel Holdings Cyprus Ltd and up to 4,31,360 equity shares by Pandara Trust, Scheme I through its trustee Vistra ITCL (India) Ltd.
Including a private placement aggregating up to Rs 145 crore, the company might also consider a further issue of equity shares. If that happens, the quantum of the fresh issue shall come down.
The Book running lead managers for the issue are SBI Capital Markets Ltd, DAM Capital Advisors Ltd and IIFL Securities Ltd.
Yatra Online, based in Gurugram, was launched in August 2006. With over 700+ Corporate customers, Yatra is India’s leading Corporate Travel services provider. It is one of the country’s leading online travel companies and operates the website Yatra.com.
Information about pricing, availability, and booking facility for domestic and international air travel, domestic and international hotel bookings, holiday packages, buses, trains, in city activities, inter-city, and point-to-point cabs, homestays, and cruises is provided by the company. Yatra provides real-time bookings for more than 103,000 hotels in India and over 1,500,000 hotels around the world.
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