The Juniper Hotels IPO concluded with a subscription of 2.08 times on the final bidding day, February 23, as investors purchased 6.01 crore equity shares against the offer size of 2.89 crore equity shares. Qualified institutional investors (QIIs) led the participation, oversubscribing their quota by 2.96 times, while retail investors subscribed to 1.28 times their portion. Non-institutional investors subscribed to 0.85 times their allocated shares, according to exchange data.
The Mumbai-based luxury hotel development and ownership company initiated its inaugural public issue of Rs 1,800 crore on February 21, with a price range of Rs 342-360 per share. This book-built IPO comprised solely a fresh issue by the company, with no offer-for-sale (OFS) component. Juniper Hotels, owning a portfolio of seven hotels and serviced apartments with a total of 1,836 rooms, plans to allocate Rs 1,500 crore of the issue proceeds towards debt repayment, while the rest will be utilized for general corporate purposes and issue expenses.
Upon completion of the IPO, the company’s debt load is expected to significantly decrease. As of September 2023, it held outstanding borrowings amounting to Rs 2,252.75 crore, up from Rs 2,045.6 crore as of March 2023. Juniper Hotels operates its properties under three distinct segments: luxury, upper upscale, and upscale, with brands like Grand Hyatt, Andaz, and Hyatt Regency.
Despite experiencing losses, Juniper Hotels saw a reduction in losses for the fiscal year ending March FY23, dropping to Rs 1.5 crore from Rs 188 crore in FY22. However, its revenue from operations more than doubled to Rs 666.85 crore during the same period, compared to Rs 308.7 crore previously. Nonetheless, the company reported increased losses in the six months ending September FY24, rising to Rs 26.5 crore from Rs 17.5 crore the previous fiscal, although revenue from operations also grew to Rs 336.1 crore from Rs 294.3 crore.
The basis of allotment for the IPO shares is scheduled to be finalized by February 26, with equity shares credited to successful investors’ demat accounts by February 27. Trading of its equity shares will commence on the bourses from February 28. Despite expectations for a reduction in debt post-issue, the IPO shares are not commanding significant premiums in the grey market, possibly due to the company’s loss-making status and subdued subscription figures, as noted by market observers.
