Juniper Hotels gets SEBI nod for Rs 1,800 crore IPO. Check details

Juniper Hotels Ltd, the operator of "Hyatt" brand hotels, has received the go ahead from the Securities and Exchange Board of India (SEBI) to raise Rs 1,800 crore through an initial public offering (IPO).

The nod from SEBI comes after Juniper Hotels filed its initial IPO papers on September 28, 2023.

The IPO, with a face value of Rs 10, comprises only a fresh issue of equity shares and does not include an Offer for Sale (OFS) component.

The company, in collaboration with the lead bankers, may also consider a private placement for cash consideration, known as "Pre-IPO Placement," for an amount up to Rs 350 crore. If completed, this placement will lead to a reduction in the fresh issue size.

The net proceeds from the IPO, estimated at Rs 1,500 crore, are earmarked for repayment, prepayment, or redemption of certain outstanding borrowings, including interest payments, undertaken by Juniper Hotels and its subsidiaries. The remaining funds will be allocated for general corporate purposes.

Juniper Hotels, jointly owned by Saraf Hotels Limited and Two Seas Holdings Limited (an affiliate of global hospitality giant Hyatt Hotels Corporation), operates as a luxury hotel development and ownership enterprise.

As of June 30, 2023, it owns 20 per cent of the total 1836 "Hyatt" affiliated hotel keys in India, according to the Horwath Report cited in the DRHP. The company manages a diverse portfolio comprising seven hotels and serviced apartments.

The hotels and serviced apartments are spread across various categories, including luxury, upper upscale, and upscale.

They are strategically located in Mumbai, Delhi, Ahmedabad, Lucknow, Raipur, and Hampi. The Grand Hyatt Mumbai Hotel and Residences, notably, holds the title of being the largest hotel in India.

In the fiscal year 2023, Juniper Hotels reported a significant increase in revenue from operations, rising by 116.03 per cent to Rs 666.85 crore compared to Rs 308.69 crore in the previous year.

The net loss also narrowed to Rs 1.5 crore in fiscal 2023, down from Rs 188.03 crore in fiscal 2022.

The book-running lead managers for the IPO are JM Financial Limited, CLSA India Private Limited, and ICICI Securities Limited.

KFin Technologies Limited will serve as the registrar of the offer. The equity shares are slated for listing on both the BSE and NSE.