Wednesday, the third and final day of Yatra Online’s maiden initial public offering (IPO), is witnessing a ‘tepid’ response from investors, with only the retail portion fully booked thus far, according to HT’s sister publication Mint.
The ₹775 crore IPO of one of India’s largest travel services providers opened for subscription on September 15. With the net proceeds, the Gurugram-headquartered company aims to fund strategic investments, acquisitions, and inorganic expansion, as well as general corporate purposes, investments in customer acquisition and retention, technology, and other organic growth activities.
Yatra Online IPO: Day 3 status
As per Mint, which cited data from the National Stock Exchange (NSE), the issue got subscribed 39% till 12 noon. The public issue has received bids for 1.18 crore equity shares as against 3 crore shares on offer. In the retail category, it has been subscribed 1.39 times so far, 12% in the Non-Institutional Investors (NII) category, and 7% within the Qualified Institutional Buyers (QIBs).
Yatra Online IPO: GMP
On the final day of bidding, the issue’s grey market premium (GMP) is 0. This means that the shares are at their ₹142 issue price, and without any premium or discount in the grey market today.
Yatra Online IPO: Important dates
On September 25, Yatra Online is likely to allot IPO shares, and initiate refunds the very next day. The crediting of shares to demat accounts of the eligible allottees is expected on September 27. On September 29, these are proposed to be listed on the Bombay Stock Exchange (BSE) and NSE.
Yatra Online IPO: To subscribe or not?
According to Arihant Capital Markets: “With a heightened focus on the high margin corporate business, we expect the company to display strong bottom-line growth in the years to come. The B2B business is expected to grow at a 5 year CAGR of 15% for the next 5 years. The offer is made at around 30.9x post-IPO EV/EBITDA at the upper price band. We recommend investors subscribe for listing gains.”
(Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint or Hindustan Times.)
