Juniper Hotels IPO received muted response; subscribed 15% on day2 so far

26 Mar 2024 , 03:17 PM

Juniper Hotels’ public issue has garnered a modest response from investors, with only a 15% subscription recorded on February 22, the second day of bidding. Notably, retail investors bid 72%, while high net-worth individuals secured 0.08 times the allotted quota. Click here to subscribe the IPO.

The company aims to raise ₹1,800 Crore through a fresh issuance of 5 Crore shares, with the price band set at ₹342-360 per share. The issue is scheduled to close on February 23. Proceeds from the issuance will primarily go towards loan repayment, including those from recent acquisitions such as CHPL and CHHPL, with the remainder earmarked for general corporate purposes.

During the one-day opening of the anchor book on February 20, the company successfully raised ₹810 Crore from various anchor investors.

While Juniper Hotels witnessed a narrowed net loss to ₹1.5 Crore in FY23 from ₹188 Crore in FY22, its revenue more than doubled to ₹666.85 Crore. However, for the six months ended September 2023, the net loss widened to ₹26.5 Crore compared to the year-ago period, with total borrowings amounting to ₹2,252.74 Crore.

Juniper Hotels operates as a luxury hotel development and ownership company, boasting the largest ownership by the number of keys of Hyatt-affiliated hotels in India as of September 30, 2023. The company’s portfolio comprises seven hotels and serviced apartments.