Juniper Hotels' IPO sees modest subscriptions on Day 2

22 Feb 2024 , 05:03 AM

Investor response to Juniper Hotels’ public offering has been muted thus far; on the second day of bidding on February 22 as of 4:55 pm, just 23% of the total subscription was made. High net worth people purchased 0.14 times the allocated quota, qualified institutional buyers purchased 0.06 times the reserved amount, and retail investors bid 87% of the total.

The company intends to issue an additional 5 Crore shares in order to raise ₹1,800 Crore. The issue has a price range of ₹342-360 per share and is scheduled to close on February 23. The money raised will be used by the business to pay back its debts as well as those from its most recent purchases, CHPL and CHHPL. The remaining money will be used for general corporate purposes.

On February 20, the company raised ₹810 Crore from multiple anchor investors during the first day of the anchor book. The anchor book included participation from the following: Fidelity Funds, Government Pension Fund Global, Camrignac Portfolio, The Prudential Assurance Company, HSBC Global Investment Funds, Nedgroup Investment Funds, Marshall Wace Investment Strategies, Natixis International Funds, Schroder International, GAM Multistock, Goldman Sachs, and Societe Generale.

Revenue more than doubled to ₹666.85 Crore, while Juniper Hotels’ net loss shrank to ₹1.5 Crore in FY23 from ₹188 Crore in FY22. But compared to the same period last year, the net loss for the six months that ended in September 2023 increased to ₹26.5 Crore. The total amount borrowed during that time was 2,252.74 Crore.

JM Financial, CLSA India, and ICICI Securities are the issue’s book-running lead managers, while Kfin Technologies is the registrar. Arun Kumar Saraf, Saraf Hotels, Two Seas Holdings, and Juniper Investments are the company’s promoters.

As of September 30, 2023, Juniper Hotels, a premium hotel development and ownership company, held the most number of keys among Hyatt-affiliated hotels in India. The company offers seven serviced flats and motels in its portfolio.

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