Travel-tech startup Yatra had said before its initial public offering (IPO) that it is placing a large wager on predicted development in the travel industry, forecasting a Compound Annual development Rate (CAGR) of 9-11 percent in the travel sector over the next five years. The business is also concentrating on developing new freight handling segments to increase income.
The Indian travel sector grew significantly during the financial years 2017 and 2023, from about INR 2,82,500 to 2,84,500 crores, according to a Crisil analysis. According to predictions, the sector might reach INR 4,54,000–4,56,000 crores by 2028 if this growth trajectory continues. The expansion of the foundational infrastructure for travel, rising income levels, discretionary spending on travel and tourism, and an increase in travel volume all contribute to this trend.
The research highlighted increased travel for both business and pleasure, better visas, and improved transportation connectivity.
Domestic aviation is a major force in travel. In the nation, airlines are expanding their fleet. In India, we now have fewer than 700 aircraft, but we have orders for more than double that amount. So, the travel industry will increase significantly, stated Dhruv Shringi, CEO of Yatra Online, during a press conference, adding, “The next ten years will see a massive expansion.”
We are also seeing a huge increase in aviation’s supporting infrastructure, he added. We are seeing tremendous airport expansion in major metropolises as well as the construction of new airports in Tier II and III locations. Within travel, travel is growing rapidly, and basic infrastructure is growing.
News on Yatra’s IPO On September 15th, Yatra Online, an online travel agency, will begin accepting subscriptions for its initial public offering (IPO). A fresh issue of shares valued at INR 602 crores and an offer for sale (OFS) of up to 12.2 million shares by a promoter and existing investor are both part of the Yatra IPO.
Yatra Online IPO subscription period:
Beginning on September 15, investors will be able to subscribe for the Yatra Online IPO through September 20. However, due to the market’s weekend closure, the bidding period will only be open for three days.
The final day of the IPO, September 20, will now serve as the deadline for UPI mandate approval for Yatra IPO bidding, according to information posted on the Bombay Stock Exchange (BSE) website.
Yatra Online IPO Price Band:
For its first public offering, the 2005-founded business has established a price band of INR 135-142 per equity share. Compared to the price at which Yatra Online offered shares to its promoter in the pre-IPO placement last year, this IPO pricing range is much less expensive. On December 10, 2022, the online travel agency sold shares to its promoter, TCIL Travel Holdings Cyprus Limited, at a floor price of INR 236 per share.
Yatra Online IPO: Available Shares
In the IPO, new equity shares worth up to INR 602 crores would be issued, along with an offer for sale (OFS) of 12,183,099 shares. The IPO might raise up to INR 775 crores at the top of the price range.
Yatra’s Use of Proceeds: The business intends to use up to INR 150 crores of the proceeds from the new issue for strategic purchases, acquisitions, and initiatives aimed at fostering organic growth. A further sizeable sum, INR 392 crores, would be set aside for technology investments and other programs to promote organic growth. According to Dhruv Shringi, CEO of Yatra Online, “the net proceeds from the offer for sale will be used for general corporate purposes, while the proceeds from the fresh issue will be used for strategic investments, acquisitions, and organic growth initiatives.”
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IPO for Yatra Online: Running Lead Managers
The book running lead managers for this issue are IIFL Securities, DM Capital Advisors, and SBI Capital Markets.
Yatra Online IPO:
The registrar for the issuance has been named as Registrar Link Intime India Private Limited.
Consolidated revenue from operations for the company rose to INR 380 crores for the fiscal year 2013, up from INR 198 crores the year prior. The business reported INR 7.6 crores in profit for FY23.