SEBI Approves Yatra Online IPO – Here Are the Company and IPO Details

Yatra Online Limited has received confirmation from SEBI to float their proposed Initial Public Offering. The IPO will see the issue of fresh equity shares and an offer for sale, as per their draft document submitted with SEBI. 

Yatra is an online travel service provider with a corporate customer base of 700 and over 46,000 registered SME customers. It has a network of over 94,000 hotels and homestays across 1400 cities in India. It also has an international network of over 2 million hotels. This is the largest tie-up network among all online travel companies in India. Yatra also offers corporate freight forwarding services through its Yatra Freight vertical. The various services and information provided by Yatra.com include,

• Air travel pricing, availability and booking for both domestic and international travel,
• National and international hotel and homestay booking,
• Buses, trains, inter-city and point-to-point cab booking,
• Visa facilitation,
• Holiday packages, tours, sightseeing, events and shows etc.

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Key Information on the Yatra IPO

• The IPO includes a fresh issue of 9,328,358 equity shares. The offer for sale includes the promoter sale of 8,896,998 equity shares by THCL Travel Holding Cyprus Limited and 431,360 equity shares by investor Vistra ITCL India Limited. 
• The book-running lead managers are SBI Capital Markets, DAM Capital Advisors and IIFL Securities. Link Intime India is the registrar of the IPO. 
• The company had a total income of Rs 894 million in September 2021, with a restated loss before tax of Rs 187 million. The losses have reduced from Rs 2125 million in FY 2019, Rs 699 million in FY2020 and Rs 1189 crores in FY2021.
• The company plans to utilise the IPO proceeds towards, 
  1. Strategic investments, acquisitions and inorganic growth,
  2. Customer acquisition and retention, technology, organic growth initiatives,
  3. General corporate purposes 
• The gross proceeds from the fresh issue are expected to raise Rs 7500 million.
• The face value of the equity share is Rs 1. However, the price band and relevant IPO-related dates are yet to be finalized.

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The travel services sector in India is highly competitive at the moment, with a high dependency on the airline ticketing business. However, Yatra is well-known in the online travel industry with a strong customer base. It has a multi-channel approach that has appeal to business as well as leisure travel enthusiasts. It has an integrated tech platform with a wide range of affiliates and service offerings. A decision on the IPO may be taken once all IPO details are declared by the company. For now, you can check the draft red herring prospectus filed by Yatra with SEBI, here. 

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Source

• https://www.moneycontrol.com/news/business/ipo/yatra-online-gets-sebis-nod-to-float-ipo-9565221.html
• https://www.sebi.gov.in/filings/public-issues/mar-2022/yatra-online-limited_57218.html
• https://www.5paisa.com/ipo/yatra-online-ipo
• https://www.cnbctv18.com/market/yatra-online-gets-sebi-nod-to-float-ipo-15214061.htm