Travel service provider Yatra Online Limited has filed draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India to raise funds through an initial public offering (IPO), an official statement of the company said.  

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Yatra Online country’s largest corporate travel services provider and the second largest online travel company among key online travel agency (OTA) players in terms of gross booking revenue and operating revenue, for fiscal 2020.

See Zee Business Live TV Streaming Below:

The offer is being made through the book building process, wherein not less than 75 per cent of the offer shall be available for Qualified Institutional Buyers (QIB), 15 per cent for non-institutional bidders and not more than 10 per cent for retail individual bidders.

The issue with a face value of Re 1 per equity share consists of a fresh issue of equity shares worth up to Rs 750 crore and an offer-for-sale (OFS) of up to 9,328,358 shares by existing shareholders.

The offer of sale comprises up to 8,896,998 equity shares by THCL Travel Holdings Cyprus Limited and up to 431,360 equity shares by Pandara Trust – Scheme I through its trustee Vistra ITCL.

Additionally, the company, in consultation with the lead bankers to the issue may consider a further issue of equity shares including a private placement aggregating up to Rs 145 crore. If such placement is completed, the fresh issue size will be reduced.

The issue proceeds will be utilised to the tune of Rs 150 crore for strategic investments, acquisitions and inorganic growth, Rs 500 crore for investment in customer acquisition and retention, technology, and other organic growth initiatives besides general corporate purposes.

Yatra Online, Inc is the parent company of Yatra Online Limited, based in Gurugram, has approximately 700 large corporate customers, and over 46,000 registered SME customers.

The company’s products and services are divided into three categories: airline tickets, which includes standalone sales of airline tickets as well as travel packages that may include hotel rooms, cruises, travel insurance, and visa processing; hotels and holiday packages, which includes standalone sales of hotel rooms as well as travel packages that may include hotel rooms, cruises, travel insurance, and visa processing; and other services, which includes rail tickets, bus tickets, taxi rentals, and other services.

The online travel company provides access to hotels, homestays, and other lodgings through its platform, which is the largest among main OTA competitors, with around 93,500 hotels in approximately 1,400 cities and towns in India and more than two million hotels globally.

SBI Capital Markets Limited, DAM Capital Advisors Limited and IIFL Securities Limited are the book running lead managers for the issue, while Link Intime is the registrar.