New Delhi: Juniper Hotels Ltd, the company that runs hotels under the Hyatt brand, has filed preliminary papers with capital markets regulator Sebi to raise ₹1,800 crore through an initial public offering (IPO). As per the company’s DRHP, its maiden public issue will be through a fresh issue of equity shares with no Offer for Sale (OFS) component.
The company is co-owned by Saraf Hotels Limited and Two Seas Holdings Limited, an affiliate of global hospitality company Hyatt Hotels Corporation. It owned 20% of the total 1,836 Hyatt-affiliated hotel rooms in India as of June 30, 2023, according to a report by hospitality consultancy Horwath Report as cited in the DRHP. The company manages seven hotels and serviced apartments.
The issue is being made through the book-building process, wherein not less than 75% of the issue shall be available for allocation on a proportionate basis to qualified institutional buyers, only up to 15% to non-institutional investors, and only up to 10% to retail individual investors.
The company, in consultation with the lead bankers to the issue, may consider a further issue of equity shares on a private placement for cash consideration aggregating up to ₹350 crore pre-IPO placement and if such placement is completed, the fresh issue size will be reduced.
It said it intends to use its net proceeds of ₹1,500 crore towards repayment, prepayment, or redemption, in full or in part, of certain outstanding borrowings (including payment of the interest accrued thereon) availed by the company and its subsidiaries and for general corporate purposes.
It has hotels in Mumbai, Delhi, Ahmedabad, Lucknow, Raipur, and Hampi including the Grand Hyatt Mumbai Hotel and Residences and the Andaz Hotel in Delhi. JHPL is promoted by the Saraf group and Hyatt – both owning 50 % each in JHPL.
For FY23, it declared that its revenue from operations more than doubled, increasing to ₹666.85 crore against ₹308.69 crore in the last fiscal. Its net loss narrowed to ₹1.5 crore in FY23 over ₹188.03 crore in FY22.
JM Financial Limited, CLSA India Private Limited, and ICICI Securities Limited are the book-running lead managers, and KFin Technologies Limited is the registrar of the offer. The equity shares are proposed to be listed on the BSE and NSE.
In September this year, Mint reported that Hyatt Hotels in India has a portfolio of 43 hotels and intends to increase the number to 50 before the end of the year.
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Updated: 29 Sep 2023, 07:25 PM IST