Juniper Hotels makes tepid debut, lists barely above IPO price

Juniper Hotels IPO: Ahead of the debut, the stock’s grey market premium was totally wiped off

The stock of Juniper Hotels made a tepid debut, listing at a 1.38 percent premium to the IPO price on February 28. The stock opened at Rs 365 on the NSE and at Rs 361.2 on the BSE against the issue price of Rs 360.

Ahead of the debut, the stock’s grey market premium was totally wiped off. However, the stock was commanding a 1 percent premium when the IPO opened on February 21. The grey market is an unofficial ecosystem where shares start trading before the allotment in the IPO and until the listing day. Most investors track the GMP to get an idea of the listing price.

Also read: Juniper Hotels IPO: 10 things to know about the Rs 1,800-crore issue

The Rs 1,800-crore public issue had seen a subscription of 2.08 times during February 21-23, with qualified institutional investors buying 2.96 times the reserved portion, and retail investors picking up 1.28 times the allotted quota. The portion set aside for non-institutional investors was subscribed 0.85 times.

The IPO was entirely a fresh issue of 5 crore shares. The price band was fixed at Rs 342-350 per 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.

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

All you need to know about Juniper Hotels IPO

Being in the luxury hotel development and ownership space, Juniper Hotels has a portfolio of seven hotels and serviced apartments with a total of 1,836 rooms, under three distinct segments namely luxury (the Grand Hyatt Mumbai Hotel and Residences and Andaz Delhi), upper upscale (the Hyatt Delhi Residences, Hyatt Regency Ahmedabad, Hyatt Regency Lucknow and Hyatt Raipur; and upscale (Hyatt Place Hampi).