On the last day of Yatra Online’s inaugural initial public offering (IPO), which is Wednesday, there is a lukewarm response from investors.
Yatra Online, a major player in India’s travel services sector, launched its ₹775 crore IPO for subscription on September 15. The company, headquartered in Gurugram, aims to utilize the net proceeds for strategic investments, acquisitions, and expansion through inorganic means. It will also be allocated for general corporate purposes, investments in customer acquisition and retention, technology, and other activities related to organic growth.
As per data from the National Stock Exchange (NSE), the IPO has received a subscription of 39% by noon. This translates to bids for 1.18 crore equity shares out of the 3 crore shares offered. In specific categories, it has seen 1.39 times subscription in the retail segment, 12% in the Non-Institutional Investors (NII) category, and 7% within the Qualified Institutional Buyers (QIBs).
Regarding the grey market premium (GMP) on the final day of bidding, it stands at 0. This indicates that the shares are trading at their issue price of ₹142, without any premium or discount in the grey market.
Key dates for the Yatra Online IPO include the likely allotment of shares on September 25, with refunds expected to be initiated the following day. Eligible allottees can anticipate the shares to be credited to their demat accounts on September 27. Finally, the shares are slated to be listed on the Bombay Stock Exchange (BSE) and NSE on September 29.
Arihant Capital Markets suggests, “With a heightened focus on the high-margin corporate business, we expect the company to display strong bottom-line growth in the years to come. The B2B business is expected to grow at a 5-year CAGR of 15% for the next 5 years. The offer is made at around 30.9x post-IPO EV/EBITDA at the upper price band. We recommend investors subscribe for listing gains.
Also Read: Yatra Online IPO Subscription Open Till September 20: Key Details
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