Juniper Hotels IPO: Issue subscribed 11%, retail portion booked 52% on day 1

Juniper Hotels IPO: The price band for the issue, which will close on February 23, has been fixed at Rs 342-360 a share

Juniper Hotels IPO was subscribed 11 percent on February 21, the first day of bidding as retail investors bid 52 percent while the high net-worth individuals picked 0.06 times of the allotted quota.

The price band for the issue, which will close on February 23, has been fixed at Rs 342-360 a share. The Rs 1,800-crore public offer is entirely a fresh issue of 5 crore shares. The anchor book opened for a day on February 20 with the company raising Rs 810 crore from several anchor investors.

Also Read: Juniper Hotels IPO: 10 things to know before subscribing to Rs 1,800-crore issue

Marquee investors including 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 participated in the anchor book.

The company will use the proceeds to repay its loans and those of its recent acquisitions — CHPL and CHHPL. The remaining funds will be used for general corporate purposes.

Also Read: Juniper Hotels working to bring down debt and turn profitable post IPO: Management

It reported a net loss of Rs 1.5 crore for FY23, significantly lower from Rs 188 crore in the previous year. Revenue more than doubled to Rs 666.85 crore from FY22. However, for the six months ended September 2023, net loss widened to Rs 26.5 crore from the year-ago period. Total borrowings in the same period stood at 2,252.74 crore.

The lead managers to the IPO are JM Financial, CLSA India, and ICICI Securities, while Kfin Technologies is the registrar. The company's promoters are Arun Kumar Saraf, Saraf Hotels, Two Seas Holdings, and Juniper Investments.

Also Read: Juniper Hotels IPO: Should you subscribe to the luxury hospitality company?

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