Yatra IPO: The Nasdaq Listed Yatra Online Subsidiary Filed DRHP For IPO

Today, March 25, 2022, Yatra Online Limited, a subsidiary of Yatra Online Inc, a Nasdaq listed company, filed a Draft Red Herring Prospectus (DRHP) with the market regulator SEBI for an initial public offering (IPO) aggregating up to Rs 7,500 million in primary proceeds and a secondary offering of up to 8,896,998 equity shares by THCL Travel Holding Cyprus Limited, a subsidiary of Yatra Online, Inc.

"Over the last 15 years, we have grown our business to become one of India's leading online travel agencies," said Dhruv Shringi, Chief Executive Officer of Yatra Online, Inc. "The Indian travel industry is expected to continue to grow, driven by the development of tourism infrastructure, rising discretionary spending, and more frequent business and leisure travel. With this proposed equity offering, we will be able to tap into a complementary shareholder base which provides a tremendous opportunity to benefit from growing tourism spending in India and to accelerate the important growth initiatives we have underway, driving value for our investors over the long term."

Yatra Online Inc. expects that its subsidiary Yatra Online Limited's IPO in Inida will provide it with access to domestic Indian institutional and retail investors who are presently unable to participate in Yatra Online Inc. owing to regulatory restrictions on its NASDAQ listing. It is also looking to expand the merged company's prospective shareholder base by including Indian capital markets and increasing its visibility to a bigger pool of equities analysts. And, by raising money at a potentially higher value, dilution and balance sheet risk are reduced.

A price discovery process will establish the level of dilution of Yatra Online, Inc. due to the primary issue of shares and the value of proceeds from a secondary sale of shares by THCL.
Yatra Online Limited's IPO will be subject to favourable market conditions, as well as corporate, regulatory, and other approvals, as required. The IPO's success is not certain, according to the filed DHRP.

Merchant banks working on the IPO include SBI Capital Markets, DAM Capital, and IIFL Securities. According to the DHRP, the legal consultants include J Sagar Associates, Indus Law, and Trilegal.