Juniper Hotels IPO subscribed 23%, retail portion booked 87% on Day 2

Juniper Hotels IPO: The company plans to raise Rs 1,800 crore through a fresh issuance of 5 crore shares

The public issue of Juniper Hotels has so far received a subdued response from investors, with only 23 percent subscription on February 22, the second day of bidding. Retail investors bid 87 percent, while high net-worth individuals picked up 0.14 times the allotted quota, and qualified institutional buyers bought 0.06 times the reserved portion.

The company plans to raise Rs 1,800 crore through a fresh issuance of 5 crore shares. The price band for the issue, which will close on February 23, has been fixed at Rs 342-360 a share. 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 IPO: 10 things to know before subscribing to Rs 1,800-crore issue

The anchor book opened for a day on February 20 with the company raising Rs 810 crore from several anchor investors. 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.

Also Read: Juniper Hotels IPO: Should you subscribe to the Rs 1,800-crore issue?

Juniper Hotels’ net loss narrowed to Rs 1.5 crore in FY23 from Rs 188 crore in FY22 and revenue more than doubled to Rs 666.85 crore. 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 book-running lead managers to the issue 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 working to bring down debt and turn profitable post IPO: Management

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.