Yatra Online Limited, based in Gurugram is preparing to release its offering (IPO) on September 15th. The IPO comprises an issue size of Rs 602 crore and an offer, for sale of up to 12,183,099 equity shares. Yatra, a travel agency (OTA) intends to utilize the funds, for strategic expansion attracting new customers and advancing their technology.
Yatra Online Limited (yatra.com), headquartered in Gurugram, is set to launch its initial public offering (IPO) on September 15. The company submitted its Draft Red Herring Prospectus (DRHP) to SEBI on March 24 of the previous year.
The IPO comprises two components: a fresh issue size of Rs 602 crore and an offer for sale of up to 12,183,099 equity shares. The allocation of the issue size will be divided as follows: 75% for qualified institutional bidders, 15% for non-institutional investors, and 10% for retail investors.
It’s worth noting that the fresh issue size of Rs 602 crore is a reduction from the initially planned Rs 750 crore. This reduction includes a pre-IPO placement of approximately Rs 62 crore, consisting of 26,27,697 equity shares issuedforf Rs 236 per equity share to one of its promoters, THCL, via a rights issue.
The objectives of the IPO indicate a clear strategy: Rs 150 crore will be earmarked for strategic investments, acquisitions, and inorganic growth, while Rs 392 crore will be allocated for customer acquisition and retention, technology development, and other organic growth initiatives, in addition to general corporate purposes.
As of March this year, Yatra boasts more than 21 lakh hotel and accommodation tie-ups, making it the largest player among domestic Online Travel Agencies (OTAs). The company generates revenue from three primary business lines: Air Ticketing, hotels and packages, and other services.
According to the CRISIL Report, over 90% of its total traffic in FY23 comes from direct and organic sources, signifying visitors who reach the website through unpaid search results.
In terms of financial performance, Yatra’s revenue for the fiscal years 2023, 2022, and 2021 stood at Rs 380.16 crore, Rs 198.06 crore, and Rs 125.45 crore, respectively.
Notably, as the economy recovered and travel and tourism rebounded after the pandemic, the company’s EBITDA skyrocketed by 1128% to Rs 51.08 crore for the year ending March 31, 2023, compared to Rs 4.16 crore in the previous fiscal year ending March 31, 2022.
In the same vein, EBITDA profit surged by 107.30% to Rs 4.16 crore for the year ending March 31, 2022, from a loss of Rs 56.98 crore in the year ending March 31, 2021.
SBI Capital Markets, DAM Capital, and IIFL Securities are serving as the book-running lead managers for the IPO.
