Luxury hotel development and ownership company, Juniper Hotels Limited, known for being the largest owner of Hyatt affiliated hotels in India as of September 30, 2023, has announced the price band for its upcoming Initial Public Offering (IPO).
Price Band and IPO Details
The company has fixed the price band of Rs 342 to Rs 360 per Equity Share for its IPO. The subscription for the issue will open on February 21, 2024, and close on February 23, 2024. Investors have the option to bid for a minimum of 40 Equity Shares, with the opportunity to bid in multiples of 40 Equity Shares thereafter.
The Issue consists entirely of a fresh issue of up to Rs 18,000.00 million with no offer for sale component.
Utilization of Proceeds
The company aims to use a significant portion, up to Rs 15,000.00 million, from the money it collects through the IPO to pay off loans it had taken earlier. These loans were utilized by the company and its subsidiaries, namely Chartered Hotels Private Limited and Chartered Hampi Hotels Private Limited. The rest of the funds will be kept for general company needs.
Company Background and Ownership
Promoted by Saraf Hotels Limited, its affiliate Juniper Investments Limited, and Two Seas Holdings Limited, an indirect subsidiary of global hospitality company Hyatt Hotels Corporation, Juniper Hotels Limited owns and manages a portfolio of seven hotels and serviced apartments. The company operates a total of 1,836 keys of Hyatt affiliated hotel keys in India as of September 30, 2023.
Portfolio Segmentation
The hotels and serviced apartments are classified under three distinct segments: luxury, upper upscale, and upscale. The company holds the largest aggregate inventory of upper-tier branded serviced apartments in Mumbai and New Delhi among hotels owned by major private investors.
Financial Performance
For the fiscal year 2023, the company reported an increase in revenue from operations, rising by 116.03 per cent to Rs 6,668.54 million compared to Rs 3,086.89 million in fiscal year 2022. The restated loss for the year narrowed to Rs 14.97 million in fiscal year 2023 from Rs 1,880.31 million in fiscal year 2022. For the six months ended September 30, 2023, revenue from operations stood at Rs 3,361.12 million.
Lead Managers and Listing Plans
JM Financial Limited, CLSA India Private Limited, and ICICI Securities Limited will play the role of book-running lead managers for the Issue. Meanwhile, KFin Technologies Limited is appointed as the registrar to the Issue. Additionally, the Equity Shares are expected to be listed on both the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange).
