Juniper Hotels IPO Aims for ₹1,800 Crore Growth; Sets Price Band at ₹342-360 per share

15 Feb 2024 , 10:01 AM

Juniper Hotels, a prominent luxury hotel developer, renowned for its association with the prestigious Hyatt chain in India, is set to embark on a new chapter through its upcoming Initial Public Offering (IPO). With a price band set between ₹342-360 per share, the IPO presents an enticing opportunity for investors to partake in the growth of this esteemed hospitality brand.

Overview of the IPO: 

Scheduled to open for subscription from February 21 to 23, 2024, Juniper Hotels’ IPO aims to raise ₹1,800 Crore through a fresh issue, with no offer-for-sale component. Notably, around 10 percent of the issue is reserved for retail investors, allowing them to bid for a minimum of 40 shares and in multiples thereafter. This translates to a minimum investment of ₹13,680, with the bidding amount potentially reaching ₹14,400 at the upper end.

Timeline:

• Basis of Allotment: Monday, February 26, 2024
• Initiation of Refunds: Tuesday, February 27, 2024
• Credit of Shares to Demat: Tuesday, February 27, 2024
• Listing Date: Wednesday, February 28, 2024

Company Profile: 

Juniper Hotels stands as a premier luxury hotel development and ownership company in India, boasting the largest ownership of ‘Hyatt’ affiliated hotels in the country as of September 30, 2023. With a portfolio comprising seven hotels and serviced apartments located across key cities such as Mumbai, Delhi, Ahmedabad, Lucknow, Raipur, and Hampi, Juniper Hotels epitomizes opulence and sophistication in the hospitality industry.

Financial Performance and Utilization of Funds: 

The company’s financials reflect a promising trajectory, with a significant reduction in net loss from ₹188 Crore in the previous year to ₹1.5 Crore for the fiscal year ended March FY23. Moreover, revenue from operations witnessed a commendable surge, more than doubling to ₹666.85 Crore during the same period. Juniper Hotels plans to utilize the IPO proceeds primarily to repay a debt of ₹1,500 Crore, with the remaining funds allocated towards general corporate purposes, bolstering its financial position for future growth endeavors.

Key Players and Management: 

Leading financial entities such as JM Financial Limited, CLSA India Private Limited, and ICICI Securities Limited serve as the book running lead managers for the IPO, underscoring the confidence of reputed institutions in Juniper Hotels’ potential. Additionally, KFin Technologies Limited has been appointed as the registrar for the issue, ensuring seamless coordination and execution throughout the IPO process.