In SEBI parlance, receiving an observation letter means giving the go-ahead to float the IPO. , photo credit: WS Balaji
Yatra Online Inc said that its Indian subsidiary Yatra Online Limited has received approval from capital markets regulator SEBI to launch an initial public offering (IPO).
According to the Draft Red Herring Prospectus (DRHP), the proposed IPO comprises a fresh issue of equity shares of up to ₹750 crore and an offer for sale (OFS) of 9,328,358 equity shares by Yatra India.
As part of the OFS, THCL Travel Holdings Cyprus Limited and Pandara Trust-Scheme I through its trustee Vistara ITCL (India) will sell the shares.
Nasdaq-listed Yatra Online Inc said in a statement that Yatra Online Limited has received the final observation letter dated November 17 from SEBI in respect of DRHP filed in March.
In SEBI parlance, receiving an observation letter means giving the go-ahead to float the IPO.
The proposed IPO may open for subscription within a period of 12 months from the date of issue of the overview paper.
As per the draft papers, the travel services provider plans to use the net proceeds from the fresh issue for strategic investments, acquisitions and investments in inorganic growth and customer acquisition and other organic growth initiatives.
The proceeds will also be used for general corporate purposes.
The company is a leading corporate travel service provider in India with approximately 700 large corporate customers and over 46,000 registered SME customers.
SBI Capital Markets Limited, DAM Capital Advisors Limited and IIFL Securities Limited are the Book Running Lead Managers to the Issue.