Juniper Hotels Files IPO Draft Documents with Sebi to Raise Rs 1,800 Crore

3 Oct 2023 , 09:32 AM

Juniper Hotels, a company backed by the Saraf Group and Hyatt Hotels Corporation, has submitted a draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) aimed at raising Rs 1,800 crore.

The IPO will consist solely of a fresh issue of shares, with no offer-for-sale component. Prior to the DRHP filing with the Registrar of Companies, the company may raise Rs 350 crore through a private placement (pre-IPO placement), and if successful, the issue size will be adjusted accordingly.

Juniper Hotels is jointly owned by Saraf Hotels, Juniper Investments, and Two Seas Holdings, an indirect subsidiary of Hyatt Hotels Corporation. The company operates a portfolio of seven hotels and serviced apartments, offering a total of 1,836 rooms.

The IPO proceeds will primarily be used to repay a debt of Rs 1,500 crore, with the remaining funds allocated for general corporate purposes. As of March 2023, the company and its subsidiary MHPL had outstanding borrowings of Rs 2,045.6 crore, while subsidiaries CHPL and CHHPL had a debt of Rs 201.8 crore.

Juniper Hotels recently acquired a 100% shareholding in CHPL on September 20, integrating it and its subsidiary CHHPL into its operations.

Despite having the largest inventory of upper-tier branded serviced apartments in Mumbai and New Delhi, including properties like the Grand Hyatt Mumbai Hotel and Residences and Andaz Delhi, the company has reported losses, as indicated in the DRHP.

JM Financial Ltd, CLSA India Private Ltd, and ICICI Securities Ltd will serve as the book-running lead managers for the IPO, while KFin Technologies Ltd will act as the registrar. The equity shares are expected to be listed on both the BSE and NSE.