Juniper Hotels, which runs hotels under the ‘Hyatt’ brand, has filed preliminary papers with capital market regulator Sebi to mop up Rs 1,800 crore through an Initial Public Offering (IPO).
The company’s maiden public issue will be entirely a fresh issue of equity shares, according to the Draft Red Herring Prospectus (DRHP). Additionally, the hotel chain is looking to collect up to Rs 350 crore in a pre-IPO placement round and if such a placement is completed, the fresh issue size will be reduced. The company proposes to use the net proceeds of Rs 1,500 crore towards payment of debt. Besides, a portion of proceeds will be used for general corporate purposes.
Juniper Hotels is co-owned by Saraf Hotels Ltd and Two Seas Holdings Ltd, an affiliate of global hospitality entity Hyatt Hotels Corporation. The hospitality firm has a portfolio of seven hotels and serviced apartments and operates 1,836 keys across the luxury, upper upscale and upscale category of hotels across India, as per the DRHP filed on Thursday.
At present, Saraf Hotels owns a 44.68 percent stake in Juniper Hotels, Two Seas Holdings holds a 50 percent stake and Juniper Investments has a 5.32 percent shareholding. For the fiscal year 2023, the company’s revenue from operations more than doubled to Rs 666.85 crore against Rs 308.69 crore a year ago while net loss narrowed to Rs 1.5 crore from Rs 188.03 crore.
JM Financial, CLSA India and ICICI Securities Limited are the book-running lead managers to the issue. The equity shares of the company will be listed on the BSE and NSE.
