Juniper Hotels Ltd, the hospitality company that operates hotels under the renowned “Hyatt” brand, has taken a significant step toward its expansion plans by filing preliminary papers with the Securities and Exchange Board of India (SEBI) to raise INR 1,800 crore through an initial public offering (IPO).
According to the Draft Red Herring Prospectus (DRHP), the IPO consists entirely of a fresh issue of equity shares, with no Offer for Sale (OFS) component.
The company has chosen the book-building process for its IPO, with 75 per cent of the issue available for allocation on a proportionate basis to qualified institutional buyers, 15 per cent for non-institutional investors, and 10 oer cent for retail individual investors.
Juniper Hotels, co-owned by Saraf Hotels and Two Seas Holdings (an affiliate of Hyatt Hotels Corporation), is a luxury hotel development and ownership enterprise. As of June 30, 2023, the company holds a 20 per cent stake in 1,836 “Hyatt” affiliated hotel keys in India, as per the Horwath Report referenced in the DRHP. It currently manages a diverse portfolio consisting of seven hotels and serviced apartments.
Their properties encompass various categories, including luxury, upper upscale, and upscale, strategically located across six key cities: Mumbai, Delhi, Ahmedabad, Lucknow, Raipur, and Hampi. Notably, the Grand Hyatt Mumbai Hotel and Residences is India’s largest hotel. The Hyatt Regency Lucknow and Hyatt Regency Ahmedabad are the largest upper upscale hotels in their respective markets, while Hyatt Raipur stands as the sole upper upscale hotel in Raipur. The Hyatt Regency Lucknow, added to their portfolio in 2017, is a recent expansion.
According to the Howarth Report, Juniper Hotels boasts the second-largest geographical coverage and the most extensive collective inventory of upper-tier branded serviced apartments in Mumbai and New Delhi as of June 30, 2023.In fiscal year 2023, the company’s revenue from operations more than doubled, reaching INR 666.85 crore, compared to INR 308.69 crore the previous year. Furthermore, the net loss narrowed significantly to INR 1.5 crore in fiscal 2023 from INR 188.03 crore in fiscal 2022. Notably, it had the second-highest EBITDA margin among its peers in FY 2023, following Lemon Tree Hotels Ltd.
The IPO is being managed by book-running lead managers JM Financial Limited, CLSA India Private Limited, and ICICI Securities Limited, with KFin Technologies Limited serving as the registrar of the offer. The company intends to list its equity shares on both the BSE and NSE.
Juniper Hotels’ IPO marks a significant development in its journey to expand and strengthen its position in India’s hospitality sector under the trusted “Hyatt” brand.