Yatra Online Inc's Indian subsidiary Yatra Online Ltd has received capital markets regulator SEBI's clearance to float an initial public offering (IPO).
The draft red herring prospectus (DRHP) for the planned IPO states that Yatra India will issue new equity shares up to the value of Rs 750 crore and will also make up to 9,328,358 equity shares available for sale.
As part of the OFS, THCL Travel Holdings Cyprus Ltd and Pandara Trust - Scheme I through its trustee Vistra ITCL (India) would offload shares.
Yatra Online Ltd has received the final observation letter dated November 17 from SEBI in connection with its DRHP filed in March, the Nasdaq-listed Yatra Online Inc said in a statement.
In SEBI's parlance, receiving an observation letter implies its go ahead to float the IPO.
The proposed IPO can open for subscription within a period of 12 months from the date of issuance of the observation letter, the statement noted.
Going by the draft papers, the travel services provider plans to utilise the net proceeds from the fresh issue for strategic investments, acquisitions and inorganic growth and investment in customer acquisition and other organic growth initiatives.
The proceeds would also be utilised for general corporate purposes.
The company is the leading corporate travel service provider in India with approximately 700 large corporate customers and over 46,000 registered SME customers.
SBI Capital Markets Ltd, DAM Capital Advisors Ltd and IIFL Securities Ltd are the book running lead managers for the issue.
With inputs from Agencies.