India's third-largest online travel company, Yatra Online, is set to launch its Initial Public Offering (IPO) on Friday. The offering includes a fresh issuance of shares valued at Rs 602 crore ($81 million), and an offer for sale (OFS) of up to 12.2 million shares by a promoter and existing investor.
The IPO, which will close on Tuesday, has set the price band at Rs 135-142 per equity share, substantially lower than the price at which Yatra Online issued shares to one of its promoters in a pre-IPO placement last year. In December 2022, Yatra Online allotted 2,627,697 equity shares to its promoter, THCL Travel Holding Cyprus, at an issue price of Rs 236 per share.
The bidding process for the IPO allows investors to bid for a minimum of 105 equity shares and in multiples of 105 equity shares thereafter. The new cut-off time for UPI mandate acceptance is 05:00 PM on the last day of IPO bidding.
Yatra Online plans to use the funds raised from the fresh issue primarily for strategic investments and acquisitions, amounting to Rs 150 crore ($20 million). Another significant portion of Rs 392 crore ($52 million) will be allocated for investment in customer acquisition, retention, technology, and other organic growth initiatives, according to Yatra Online CEO Dhruv Shringi.
The company's consolidated revenue from operations increased significantly in FY23 to Rs 380 crores ($51 million), up from Rs 198 crore ($26 million) in the previous fiscal year. This was largely due to recovery in both its consumer and corporate travel business following the easing of Covid-19 restrictions. In FY23, the company also generated a profit of Rs 7.6 crore ($1 million).
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