Yatra Online IPO: 10 things to know before subscribing to Rs 775-crore issue

2) Price Band

The price band for the issue has been fixed at Rs 135-142.

3) Offer Details

Yatra Online’s Rs 775-crore public offer comprises a fresh issuance of shares worth Rs 602 crore and an offer-for-sale (OFS) of 1,21,83,099 equity shares worth Rs 173 crore, at the upper price band, by the promoter and an investor. Promoter THCL Travel Holding Cyprus will offload 17,51,739 equity shares. On the other hand, investor Pandara Trust – SCHEME I, represented by its trustee Vistra ITCL (India), plans to exit the company by selling its entire 4,31,360 shares through the OFS. The company has raised 348.75 crore from 33 anchor investors ahead of the IPO.

Also Read: Yatra Online to float public issue on September 15. Here's all you need to know

4) Objectives of Issue

Yatra Online will use the proceeds to fund strategic investments, acquisitions, and inorganic growth at a cost of Rs 150 crore, and investment in customer acquisition and retention, technology, and other organic growth initiatives, estimated at a cumulative sum of Rs 392 crore.

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5) Lot Size

Investors can bid for a minimum of 105 equity shares and multiples of 105 after that. Hence the minimum investment by retail investors would be Rs 14,175 (105 (Lot size) x 135 (lower price band)). At the upper end, the bidding amount will increase to Rs 14,910.

6) Company Profile

Yatra Online is India's third-largest online travel company among key OTA (Online Travel Agency) players in gross booking revenue and operating revenue for FY23. The company has the most significant hotel and accommodation tie-ups amongst key domestic OTA players of over 21,05,600 as of March 31, 2023. Yatra Online is also India's leading corporate travel service provider with 813 large corporate customers, and over 49,800 registered SME customers.

Also Read: Yatra Online raises Rs 348 crore from anchor investors ahead of IPO

7) Valuation

“Yatra Online is well-positioned to capture a significant share of growth in the tourism industry in India, owing to its longstanding relationship with both B2B and B2C customers. This enables the company to target India's most frequent and high-spending travellers and educated urban consumers. With the growth in the tourism industry, we expect the online travel market share (OTA) to increase faster than captive players, improving the company's profitability. With the company posting profits in FY23 and strong revenue growth in the past, we remain positive on the company from a medium- to long-term perspective,” analysts at Stoxbox said.

8) Promoters

Promoters THCL Travel Holding Cyprus has an 88.91-percent stake in the company and Asia Consolidated DMC Pte Ltd holds a 9.68-percent stake, while Network18 Media & Investments, and Reliance Retail, subsidiaries of Reliance Industries, are the public shareholders in the company with a 0.95-percent and 0.08-percent stake, respectively.

9) Risk Factors

Yatra Online’s significant portion of the margin comes from B2B businesses and changes in travellers' preferences due to increased cost of travel, spending habits, and other factors that may adversely affect the demand for travel services and hotel rooms, leading to an adverse effect on business, results of operations, financial condition, and cash flows. Also, any negative operating cash flows in the future would adversely affect cash flow requirements, which may adversely affect the ability to operate the business and implement growth plans, thereby affecting the financial condition, according to Stoxbox.

10) Listing Date

Yatra Online shares will be listed on both the NSE and BSE. The stock is expected to list on Friday, September 29, 2023. However, no official announcement has been made till now.