Yatra Online's IPO Sees Muted Response on First Day of Bidding; Subscribed 11%

15 Sep 2023 , 10:11 PM

The initial public offering (IPO) of Yatra Online, a prominent corporate travel company, witnessed a muted response from investors on September 15, marking the first day of bidding. Investors purchased 33.64 lakh equity shares out of the offer size of 3.09 crore shares, resulting in an 11% subscription rate.

Retail investors were the primary supporters of the offering, subscribing to 55% of the allotted quota, which accounts for 10% of the total issue size. In contrast, high net worth individuals (non-institutional investors) subscribed to only 3% of the reserved portion, representing 15% of the IPO size.

Qualified institutional buyers (QIBs), who have a 75% reservation in the public issue, have not yet placed their bids.

Yatra Online, the country’s third-largest online travel company, aims to raise Rs 775 crore through the IPO, with the upper price band set at Rs 135-142 per share.

The IPO consists of a fresh issue component worth Rs 602 crore, while the remaining funds will be generated through an offer-for-sale worth Rs 173 crore.

As of March 2023, Yatra has served over 1.4 crore cumulative travel customers, with more than half of them enrolling in the eCash loyalty program.