The retail component of Juniper Hotels' IPO purchased 1.28 times last day, with 2.08 subscriptions

The retail component of Juniper Hotels' IPO purchased 1.28 times last day, with 2.08 subscriptions

Successful investors will get credit for their equity shares into their demat accounts by February 27. The business plans to conclude the basis of allocation of IPO shares by February 26.

On the last day of bidding (February 23), investors purchased 6.01 crore equity shares against the offer size of 2.89 crore equity shares, resulting in a 2.08 times subscription for Juniper Hotels' first public offering.

The available subscription data shows that ordinary investors purchased 1.28 times their allocated share, while non-institutional investors booked 0.85 times their share. Qualified institutional investors (QIIs) outshopped other participants, purchasing 2.96 times their allocated quota. in return.

On February 21, the Mumbai-based luxury hotel development as well as ownership firm launched its Rs 1,800 crore initial public offering (IPO) with a price range of Rs 342-360 per share.

In a book-built IPO, there is no offer-for-sale (OFS) component; the business just issues a new offering.

With 1,836 rooms across seven hotels and serviced flats, Juniper Hotels would use Rs 1,500 crore of the issuance proceeds to pay down debt. The remainder will go toward issuing costs and basic company needs.

Following the offering, the company's debt load would drop dramatically. As of September 2023, its outstanding borrowings amounted to Rs 2,252.75 crore, up from Rs 2,045.6 crore in March 2023.

Hotel developer Saraf Group and the world-famous hotel brand Hyatt Hotels Corporation jointly own the company, which runs its serviced apartments and hotels under three different business segments: luxury (Andaz Delhi and Grand Hyatt Mumbai Hotel & Residences), upper upscale (Hyatt Delhi Residences, Hyatt Regency Ahmedabad, Hyatt Raipur, as well as Hyatt Raipur), and upscale (Hyatt Place Hampi).

Competitors with larger operating revenues than Juniper Hotels include listed rivals Indian Hotels Company, EIH, Lemon Tree Hotels, and Chalet Hotels.

Although losses drastically decreased to Rs 1.5 crore in the year ending in March FY23 from losses of Rs 188 crore in FY22, the firm has historically been in the red, which may account for the delayed reaction to the public problem. As. Over the same year, operating revenue more than quadrupled to Rs 666.85 crore from Rs 308.7 crore.

Furthermore, although operating revenue rose to Rs 336.1 crore from Rs 294.3 crore in the same time previous fiscal year, the loss for the six months ending in September FY24 worsened to Rs 26.5 crore from Rs 17.5 crore.

Juniper Hotels plans to complete the IPO share allotment process by February 26 and credit its equity shares to the demat accounts of the profitable shareholders by February 27.

Trading in its equity shares will commence on February 28 on stock markets.

Its IPO shares are not fetching a high premium on the gray market, according to market watchers. This might be because of the company's loss-making status and poor subscription, even if the debt load would decrease dramatically after the issuance. An unofficial marketplace for trading IPO shares prior to listing is known as the gray market.