Yatra Online IPO To Open On September 15; Details Of Anchor Investors, Allotment, Listing Here

Travel services provider, Yatra Online is set to launch its initial public offering (IPO) on September 15. The company is offering equity shares for subscription till September 20. The price band of the IPO will be announced in due course, however, the company is likely to raise Rs 750 crore from this public offer. The IPO will be listed on BSE and NSE.

As per the red herring prospectus, Yatra Online will allow bidding to anchor investors on September 14, followed by the public offer between September 15 to 18th.

The IPO is a mixture of a fresh issue worth Rs 602 crore and an offer for sale (OFS) of up to 12,183,099 equity shares. Promoters like THCL Travel Holding Cyprus and Pandara Trust-Scheme 1 Represented By Its trustee Vistara ITCL (India) will be participating in the offer for sale.

Of the total IPO size, 75% will be reserved for qualified institutional buyers (QIBs), while 15% of the issue will be allocated to non-institutional investors (NIIs) and the rest of 10% will be kept for retail individual investors (RIIs).

Companies like SBI Capital Markets, DAM Capital Advisors, and IIFL Securities are the book-running lead managers (BLRM) of the issue, while Link Intime India is the registrar.

> From Rs 602 crore fresh issue, up to Rs 150 crore of proceeds the
company plans to utilise for strategic investments, acquisitions and inorganic growth. Further, about Rs 392 crore will be utilised for investment in customer acquisition and retention, technology, and other organic growth initiatives. Also, a portion of the issue will be used for general corporate purposes.

The company will not receive any proceeds from OFS as the promoters will be receiving those for selling a part of their stakes in the IPO.

After the IPO, the basis of allotment of equity shares is expected to be carried out on September 25, while refunds are likely to be initiated on September 26, and shares are expected to be credited in demat accounts by September 27. Accordingly, as per Chittorgarh's report, the company's shares will be listed on September 28, 2023.

Yatra Online is the country's largest corporate travel services provider in terms of a number of corporate clients and the third largest online travel company in India among key OTA players in terms of gross booking revenue and operating revenue, for Fiscal Year 2023. The company has the largest number of hotel and accommodation tie-ups amongst key domestic OTA players with over 2,105,600 tie-ups, as of March 31, 2023.

Among key strategies as per the red herring prospectus, the company intends to grow its customer base by continuing to provide business and leisure travellers, with a seamless and integrated technology platform that meets all their travel needs. Further, the company plans to continue to use the eCash program as an incentive to drive repeat rates from its B2C customers and to incentivize B2B customers to transact with us on the B2C platform.

Yatra believes that its leadership position in corporate travel, integrated technology platform and speed to market in bringing customers onboard gives them a distinct advantage over the competition.

By leveraging Yatra Online's robust relationship with air carriers, and large corporate and SME customers, the company believes it will be able to provide a technology-enabled digital freight forward platform which will cover ocean freight, surface logistics and air Cargo.

The company expects to continue to pursue acquisitions that it believe will provide services, technologies or people that
complement or expand their current offerings.

Also, the company expects increased travel within and between Tier 2 and Tier 3 cities to drive growth in air and hotels, by leveraging its existing travel agent network in Tier II and Tier III cities.