Juniper Hotels Files DRHP With SEBI To Raise Rs 1800 Cr Via IPO

In order to raise Rs 1,800 crore through an initial public offering (IPO), Juniper Hotels Ltd, which operates hotels under the "Hyatt" brand, has submitted preliminary paperwork to capital markets regulator Sebi. According to the DRHP, the firm's initial public offering will be solely made up of fresh equity shares, without any Offer for Sale (OFS) components.

The issue is being made through a book-building process, in which not less than 75% of the issue must be made available to qualified institutional buyers for allocation on a proportional basis, 15% of the issue shall be made available to non-institutional investors, 10% shall be made available to retail individual investors.

The company may contemplate issuing additional equity shares via a private placement for a total cash consideration of up to Rs 350 crore ("Pre-IPO Placement") after consulting with the issue's lead bankers. If such a placement succeeds, the size of the new issue will be reduced.

The company plans to utilise the net proceeds of Rs. 1500 crore for general corporate objectives as well as the repayment, prepayment, or redemption of any existing borrowings in full or in part (as well as the payment of interest accrued thereon).

Saraf Hotels Limited and Two Seas Holdings Limited, a subsidiary of renowned international hospitality company Hyatt Hotels Corporation, jointly own Juniper Hotels. As of June 30, 2023, Juniper Hotels, according to the Howarth Report, has the second-largest geographic reach and the most comprehensive collective inventory of upper-tier branded serviced apartments in Mumbai and New Delhi.

Revenue from operations for the fiscal year 2023 jumped more than twofold, from Rs 308.69 crore in FY22 to Rs 666.85 crore. In fiscal 2023, net loss narrowed from Rs 188.03 crore in fiscal 2022 to Rs 1.5 crore. After Lemon Tree Hotels Ltd., it earned the second-highest EBITDA margin among its competitors in FY 2023.

The book-running lead managers for the offer are JM Financial Limited, CLSA India Private Limited, and ICICI Securities Limited, while KFin Technologies Limited is the registrar. It has been scheduled that the equity shares of the company will be listed on the BSE and NSE.