Juniper Hotels is into Consumer Hotels and is looking raise funds through Fresh Issue
Juniper Hotels IPO is a public offering of shares by Arun Kumar Saraf, Saraf Hotels, Two Seas Holdings and Juniper Investments. The IPO will open on February 21 and will close on February 23. The price band is ₹342 to ₹360 per share and the lot size is 40 shares. The issue size is ₹1,800. crore. The shares are expected to be listed on NSE, BSE on February 28 (^). Some additional information that you may find useful are: Company's hotels and serviced apartments are classified under three distinct segments: (a) luxury –the Grand Hyatt Mumbai Hotel and Residencesand Andaz Delhi; (b) upper upscale –the Hyatt Delhi Residences, Hyatt Regency Ahmedabad, Hyatt Regency Lucknow and Hyatt Raipur; and (c) upscale –Hyatt Place Hampi (source: Horwath Report).
Average Occupancy during FY23/FY22/FY21 were at 75.74%/53.76%/34.23%.
Average room rate (Rs) for FY23/FY22/FY21 at Rs9,875 / Rs6,221 / Rs5,657 respectively.: (**) - based on higher price band (^) indicative date
Also READ: Hotels Company Juniper Hotels files DRHP with SEBI for the proposed IPO; Key Details here
Key Pointers of Juniper Hotels IPO:
Promoters of the company are Arun Kumar Saraf, Saraf Hotels, Two Seas Holdings and Juniper Investments Currently promoters hold 100% stake in the company. While post-equity promoters stake will be 77.53%
Company has not undertaken Pre-IPO placement.
- Company aims to raise between Rs 1,800 to 1,800 crs through this IPO.
- The net proceeds of the issue will be utilized to 1) Repayment / prepayment / redemption of outstanding borrowings availed by Company and Subsidiaries, namely CHPL and CHHPL amounting to Rs. 1500 cr. and 2) General corporate purposes
- Anchor bidding is expected to commence one day prior to the IPO dates. Tentative anchor bidding date would be 20-Feb-24.
- Price band for the IPO has been fixed at Rs 342 to 360 per share and bid lot are in multiple of 40 shares. The implied market cap post-issue at Rs 7,700 to 8,010 crs.
- As per the tentative schedule, allotment date of this IPO is most likely on February 26 and share are expected to be listed on NSE, BSE on February 28.
- Company has direct peer competition in India'a Hotel sector. In Listed space peers include Chalet Hotels, Lemon Tree Hotels, The Indian Hotels Company and EIH Limited among others.
- JM Financial, CLSA India, ICICI Securities has been appointed as Merchant Banker to the issue. KFin Technologies Ltd. has been appointed as official registrar of the issue.
About Juniper Hotels Limited
Juniper Hotels LimitedJuniper Hotels is into luxury hotel development and ownership company. It is the largest owner, by number of keys of “Hyatt” affiliated hotels in India. Company has a portfolio of 7 hotels and serviced apartments and operate 1,836 keys across the luxury, upper upscale and upscale category of hotels across India. Company enjoys partnership/association with Saraf Hotels (a well-established hotel developer in India), and affiliates of a globally recognized premier hospitality brand, Hyatt Hotels Corporation.
Company's hotels and serviced apartments are classified under three distinct segments: (a) luxury –the Grand Hyatt Mumbai Hotel and Residencesand Andaz Delhi; (b) upper upscale –the Hyatt Delhi Residences, Hyatt Regency Ahmedabad, Hyatt Regency Lucknow and Hyatt Raipur; and (c) upscale –Hyatt Place Hampi (source: Horwath Report). Average Occupancy during FY23/FY22/FY21 were at 75.74%/53.76%/34.23%. Average room rate (Rs) for FY23/FY22/FY21 at Rs9,875 / Rs6,221 / Rs5,657 respectively.
About Industry
In Fiscal 2022, India was the fifth largest global economy with GDP at current prices of USD3.18 trillion and itspopulation is estimated to reach 1.66 billion by 2047, with the rich and middle class population being approximately 28% and 61%, respectively. Such growth will create major demand drivers for upper tier hotels in India. The GDP contribution of the hotel sector is estimated at USD40 billion in 2022, with projected increase to USD1 trillion by 2047. The demand for hotel rooms and services will benefit from and support economic development initiatives and investments across India. (source: Horwath Report)
| Source: SEBI, BSE, NSE, DRHP, IPO Status, Industry Data |
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Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.
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