On the last day of the Juniper Hotels IPO was subscribed 2.08 times, and the retail component was purchased 1.28 times. By February 26, the business will finalize the formula for allocating IPO shares, and by February 27, its equity shares will be credited to the demat accounts of the investors who were successful.

On the last day of bidding, February 23, the Juniper Hotels initial public offering (IPO) ended with 2.08 times subscription, with investors purchasing 6.01 crore equity shares vs the 2.89 crore equity shares that were part of the offer.

According to subscription data available with the exchanges, qualified institutional investors (QIIs) outperformed other participants, selecting 2.96 times the allotted quota; retail investors purchased 1.28 times the portion designated for them; and non-institutional investors purchased 0.85 times.

On February 21, the Mumbai-based company that develops and owns luxury hotels announced its first public offering of Rs 1,800 crore, with a price range of Rs 342-360 per share.

The book-built IPO does not include an offer-for-sale (OFS) component; rather, it consists only of the company’s new issuance.
Repaying debts will be the purpose of Rs 1,500 crore of the proceeds from the issue for Juniper Hotels, which has seven hotels and 1,836 serviced apartments within its portfolio. Any money left over will be applied to issue expenses and general company needs.

Following the offering, the company’s debt load will significantly decrease because, as of September 2023, its outstanding borrowings amounted to Rs 2,252.75 crore, up from Rs 2,045.6 crore in March 2023.

Three distinct segments operate hotels and serviced apartments operated by the hotel developer Saraf Group, which is owned by the global premier hospitality brand Hyatt Hotels Corporation. These segments are luxury (Grand Hyatt Mumbai Hotel and Residences and Andaz Delhi), upper upscale (Hyatt Delhi Residences, Hyatt Regency Ahmedabad, Hyatt Regency Lucknow and Hyatt Raipur), and upscale (Hyatt Place Hampi).

In comparison to Juniper Hotels, its listed competitors include Indian Hotels Company, EIH, Lemon Tree Hotels, and Chalet Hotels; these competitors all generate more money from their activities.

The company has historically experienced losses, but they significantly decreased in the year that ended in March of FY23, coming in at Rs 1.5 crore from Rs 188 crore in FY22. This could be one of the factors contributing to the lack of public outcry over the issue, as operational revenue more than doubled to Rs 666.85 crore from Rs 308.7 crore in the same period.

Additionally, while operating revenue climbed to Rs 336.1 crore from Rs 294.3 crore in the same time last fiscal year, losses in the six months ending in September FY24 increased to Rs 26.5 crore from Rs 17.5 crore.

In the meantime, on February 26th, Juniper Hotels will finalize the terms of the IPO share allotment, and on February 27th, its equity shares will be credited to the demat accounts of the investors who were successful.

With effect from February 28, its equity shares will be traded on the bourses.

According to market observers, there would be a substantial reduction in debt burden following the offering, but its IPO shares are not generating any significant premium in the grey market. This could be because of the company’s loss-making status and subdued subscription. An unofficial marketplace for trading IPO shares prior to listing is the grey market.

As of February 22, 2024, at 06:29 PM, the most recent Grey Market Premium (GMP) for the Juniper Hotels initial public offering (IPO) is Rs 3.

The expected listing price for Juniper Hotels’ initial public offering (IPO) is Rs 363 (maximum price plus today’s GMP), given the price band of 360.00. This suggests a 0.83 percent projected gain or loss per share.

Important Dates :

Additional Information:

IPO Details:

• IPO size: Rs 1,800 crore.
• Price range: Rs 342-360 per share.
• Subscription: 2.08 times overall, with QIIs at 2.96 times, retail at 1.28 times, and non-institutional investors at 0.85 times.

Company Information:

• Juniper Hotels plans to use Rs 1,500 crore of IPO proceeds to repay debts.
• The company owns seven hotels and 1,836 serviced apartments.
• Segments operated: Luxury, Upper Upscale, and Upscale.

Financial Performance:

• Historic losses decreased significantly in FY23 to Rs 1.5 crore from Rs 188 crore in FY22.
• Operational revenue more than doubled to Rs 666.85 crore in FY23 from Rs 308.7 crore in the same period.

Debt Situation:

• Post-offering, the company’s debt is expected to significantly decrease from Rs 2,252.75 crore (September 2023).

Market Observations:

• Grey Market Premium (GMP) as of Feb 22, 2024, is Rs 3.
• Expected listing price is Rs 363, suggesting a projected gain/loss of 0.83% per share.
• Observers note a lack of significant premium in the grey market, potentially due to the company’s loss-making status and subdued subscription.

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