Yatra Online Limited, 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 has filed its draft red herring prospectus (DRHP) with market regulator Sebi to raise funds via an initial public offering (IPO). The Offer is being made through the Book Building Process, wherein not less than 75% of the Offer shall be available for allocation to Qualified Institutional Buyers, not more than 15% of the Offer shall be available for allocation to Non-Institutional Bidders and not more than 10% of the Offer shall be available for allocation to 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 equity shares by existing shareholders.
The offer of sale comprises up to 8,896,998 equity shares by THCL Travel Holdings Cyprus Limited ("Promoter Selling Shareholders") and up to 431,360 equity shares by Pandara Trust - Scheme I through its trustee Vistra ITCL (India) Limited.
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. It is a one-stop store for travellers, offering vacation packages as well as visa assistance, excursions, sightseeing, entertainment, and events.
The gurugram based company competes with other online travel agencies, or OTAs, traditional offline travel companies, travel research companies, payment wallets, search engines, and meta search companies, both in India and abroad, including MakeMyTrip Limited, Cleartrip Private Limited, Easy Trip Planner Limited, Thomas Cook India Limited, FCM Travel Solutions India Private Limited, GBT India Private Limited, CWT India Private Limited, TripAdvisor India Private Limited, TripAdvisor India Private Limited, TripAdvisor India Private Limited, TripAdvisor India.
Yatra Online's revenue from operations during the year FY21 fell 81.37% to Rs 125.45 crore from Rs 673.33 crore in the previous year, primarily due to the impact of the COVID-19 pandemic, including lower travel demand due to travel restrictions.
The Indian travel industry grew at 8-10% CAGR between fiscal 2015 to 2020, to a size of Rs 2,470-2,490 billion and is expected to grow annually by 5-7% to Rs 3,350-3,370 billion by fiscal 2025, driven by development of tourism infrastructure, rising income levels translating to higher discretionary spending on travel and tourism, increase in frequency of travel business and leisure purposes, reforms in visa and increase in connectivity across means of transport.
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. |
