The Saraf group and Hyatt Hotels Corporation-backed Juniper Hotels has filed draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to raise Rs 1,800 crore through an initial public offering (IPO).
The IPO will purely be a fresh issue and there will be no offer-for-sale portion.
The company may mop up Rs 350 crore through private placement (pre-IPO placement), prior to the filing of red herring prospectus with the Registrar of Companies. If the firm manages to complete the private placement, the issue size will be reduced accordingly.
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Saraf Hotels and its affiliate, Juniper Investments, hold a 50 percent shareholding in Juniper Hotels. The remaining 50 percent stake is held by Two Seas Holdings, an indirect subsidiary of Hyatt Hotels Corporation.
With a portfolio of seven hotels and serviced apartments, operating a total of 1,836 keys, Juniper Hotels will use the proceeds to repay a debt of Rs 1,500 crore, the documents said. The remaining funds will be utilised for general corporate purposes.
As on March 2023, the company and its subsidiary MHPL had outstanding borrowings of Rs 2,045.6 crore, while the debt on the books of subsidiaries CHPL and CHHPL stood at Rs 201.8 crore.
On September 20, the firm acquired 100 percent shareholding in CHPL and as a result, CHPL and its subsidiary CHHPL are now part of Juniper Hotels.
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The Saraf Group and Hyatt have a longstanding relationship of over 40 years. Juniper is the only hotel company in India in which Hyatt has a strategic investment.
The flagship company of the Saraf Group, which has the largest aggregate inventory of upper tier branded serviced apartments in Mumbai (the Grand Hyatt Mumbai Hotel and Residences with 665 keys) and New Delhi (Andaz Delhi with 401 keys) among hotels owned by major private investors, has been a loss making firm, the DRHP showed.
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The net loss for the year ended March FY23 stood at Rs 1.5 crore, down significantly from Rs 188 crore in the previous year. Revenue from operations more than doubled to Rs 666.85 crore, from Rs 308.7 crore during the same period.
Juniper is the fourth company this week to file draft papers for an IPO after Dee Development Engineers, CJ Darcl Logistics, and Capital Small Finance Bank.
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