The ₹1,800-crore initial public offering of Juniper Hotels saw a lukewarm response on Day 1 with only retail investors showing some interest. The IPO was subscribed 11 per cent or 0.11 times at the end of Day 1.
The issue of Juniper Hotels, which owns the “Hyatt” brand, received bids for 32.50 lakh shares as against an offer of 2.89 crore shares (net off anchor portion).
The IPO comes out with a price band of ₹342-360 and the minimum bid lot is 40 shares. The issue closes on Friday, February 23.
Juniper Hotels IPO has reserved up to 75 per cent of the issue to qualified institutional buyers (QIBs), 15 per cent for non-institutional investors and 10 per cent for retail investors.
While retail investors portion received bids for 0.52 times, that of non-institutions by 0.06 times. QIBs are yet to make bid.
The company on Tuesday, as part of the IPO process, raised ₹810 crore from anchor investors. The hotel major informed the bourses that it allocated 2.25 crore shares at ₹360 a share to marquee investors.
Foreign and domestic institutions who participated in the anchor were Fidelity, Kotak Mahindra MF, Government Pension Fund (Norges), White Oak, Schroder, The Prudential Assurance Company (MNG), Invesco, ICICI Prudential Life Insurance, HDFC Life Insurance and Quant Mutual Fund.
Out of the total allocation of 2.25 crore shares to the anchor investors, 75 lakh shares were allocated to seven domestic mutual funds through a total of 15 schemes amounting to ₹270 crore.
Funds raised will be utilised towards repayment/ prepayment/ redemption, in full or in part, of certain outstanding borrowings availed by the company and subsidiaries, namely Chartered Hotels Private Ltd and Chartered Hampi Hotels Private Ltd along with general corporate purposes.
The company is promoted by Saraf Hotels Limited and its affiliate, Juniper Investments Ltd and Two Seas Holdings Ltd, an indirect subsidiary of a global hospitality company Hyatt Hotels Corporation. The company owns and manages a portfolio consisting of seven hotels and serviced apartments and operates a total of 1,836 keys of “Hyatt”-affiliated hotel keys in India as of September 30, 2023.
Its hotels and serviced apartments are classified under three distinct segments 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. It has the largest aggregate inventory of upper-tier branded serviced apartments in Mumbai and New Delhi among hotels owned by major private investors.
For FY23, the revenue from operations of Juniper Hotels increased 116 per cent to ₹666.85 crore against ₹308.69 crore in FY22. The restated loss for FY23 narrowed to ₹1.497 crore from ₹188.03 crore in FY22.
JM Financial Limited, CLSA India Private Limited, and ICICI Securities Limited are the book-running lead managers to the Issue and KFin Technologies Limited is the registrar to the Issue. The equity shares are proposed to be listed on the BSE and NSE.