Yatra Online IPO: The public subscription period for the Yatra Online IPO will begin on Friday, September 15, 2023, and end on Wednesday, September 20, 2023. On Thursday, the competition for anchor investors came to an end, and the company received Rs 348.75 billion. The price range for its first public offering was set at Rs. 135-142 per equity share with a Rs. 1 par value. The promoters and owners of the company aim to raise Rs 775 crore from the IPO at the upper end of the price band.
The initial public offering (IPO) consists of a fresh issue of 42,394,366 shares with a maximum value of Rs 602 crore and an offer-for-sale (OFS) in which the promoters sell 12,183,099 shares with a maximum value of Rs 173 crore. 105 shares make up each lot in the Yatra Online IPO. The company plans to use the net proceeds from the IPO for strategic purchases, inorganic growth, investments in customer acquisition and retention, technology, and other activities for organic growth, as well as basic business needs.
In terms of the number of corporate clients, Yatra Online is the top provider of corporate travel services in India, and among the major OTAs, it ranks third in terms of gross booking revenue and operational revenue for FY23. As of March 31, 2023, the company had approximately 21,05,600 hotel and accommodation tie-ups, the biggest among the major domestic OTA companies. With 813 big corporate clients, more than 49,800 registered SME clients, and the third-largest consumer online travel company (OTC) in the nation by gross booking revenue for FY23, Yatra Online is also India’s top provider of corporate travel services.
Applying for the Yatra Online IPO is recommended.
Stoxbox: Sign up
“Yatra Online is well-positioned to grab a major portion of growth in the Indian travel and tourism sector, as a result of its established B2B and B2C client relationships. This helps the business to target urban consumers who are educated and regular frequent flyers in India. With the expansion of the tourist sector, we anticipate that the market share of online travel agencies (OTAs) will expand more quickly than that of captive players, enhancing the profitability of the business. We continue to be optimistic about the company from a medium- to long-term viewpoint because it generated profits in FY23 and has historically experienced good revenue growth. As a result, we suggest ranking the issue SUBSCRIBE.
Anand Rathi: Long-term subscription
“On an FY23 basis, the company is valued at an upper band of 219x P/E and 5.8x market cap/sales, which is lower than its competitor (Easy Trip Planners, which is valued at 15.7x). We therefore think that Yatra has room for company growth thanks to market tailwinds, brand recognition, and business scalability, which will eventually lead to an increase in EBITDA margin. As a result, we suggest giving the IPO the rating “SUBSCRIBE – long term.”