Juniper Hotels Makes Subdued Debut at 1.33% Premium

28 Feb 2024 , 09:47 AM

Juniper Hotels’ shares made a subdued debut on the stock exchanges, with a listing price of ₹365 on the NSE, reflecting a premium of 1.39%, and ₹361 on the BSE, marking a 0.33% premium.

The public issue, valued at ₹1,800 Crore, witnessed a subscription of 2.08 times during the period of February 21-23. Qualified institutional investors subscribed 2.96 times the reserved portion, while retail investors subscribed 1.28 times their allotted quota. However, the non-institutional investors’ portion saw a subscription of only 0.85 times.

This IPO consisted solely of a fresh issue portion. Of the net proceeds from the fresh issue, ₹1,500 Crore will be allocated to debt repayment, with the remaining funds earmarked for general corporate purposes.

Despite being in competition with established listed peers such as Indian Hotels Company, EIH, Lemon Tree Hotels, and Chalet Hotels, Juniper Hotels has been grappling with losses. However, in the fiscal year ending March FY23, losses reduced significantly to ₹1.5 Crore from ₹188 Crore in FY22, even as revenue from operations more than doubled to ₹666.85 Crore compared to ₹308.7 Crore in the same period.

Nevertheless, the losses in the first six months of FY24 expanded to ₹26.5 Crore from ₹17.5 Crore in the corresponding period of the previous fiscal year. Despite this setback, there was an uptick in revenue from operations, which rose to ₹336.1 Crore from ₹294.3 Crore during the same period.

Specializing in luxury hotel development and ownership, Juniper Hotels boasts a portfolio of seven hotels and serviced apartments totaling 1,836 rooms, spread across three distinct segments: luxury (including the Grand Hyatt Mumbai Hotel and Residences and Andaz Delhi), upper upscale (comprising the Hyatt Delhi Residences, Hyatt Regency Ahmedabad, Hyatt Regency Lucknow, and Hyatt Raipur), and upscale (featuring Hyatt Place Hampi).