Juniper Hotels Limited, a renowned name in the luxury hotel industry in India, is gearing up for its Initial Public Offering (IPO), scheduled to open for subscription on February 21 and close on February 23. Here are ten key points to consider before diving into this investment opportunity.
1. Company Profile
Juniper Hotels operates upscale hotels and serviced apartments in major Indian cities such as Mumbai, Delhi, and Ahmedabad. Known for its luxurious accommodations and top-notch service, the company has established a strong presence in the hospitality sector.
2. IPO Details
The IPO price band is set between Rs 342 to Rs 360 per share. Investors can subscribe to the IPO starting from February 21. The lot size for the IPO is 40 equity shares, with multiples of 40 shares thereafter.
3. Financial Performance
Juniper Hotels has shown impressive growth in its financial performance. Between March 31, 2022, and March 31, 2023, the company witnessed a significant increase in both profit after tax (PAT) and revenue, with PAT surging by 99.2 per cent and revenue increasing by 1086.6 per cent.
4. Partnership with Hyatt Hotels Corporation
One of Juniper Hotels' notable strengths is its longstanding partnership with Hyatt Hotels Corporation. This partnership reflects the company's solid foundation and expertise in the hospitality industry.
5. Issue Details
The Rs 1,800 crore IPO comprises solely a fresh issue, without any offer-for-sale component. The net proceeds from the IPO will be used for general corporate purposes and repayment of outstanding borrowings.
6. Opening and Closing Dates
The IPO opens for subscription on February 21 and closes on February 23. Allocation to anchor investors is scheduled for February 20, with tentative listing dates on BSE and NSE on February 28 and allotment finalization on February 26.
7. Lead Manager and Registrar
Kfin Technologies Limited is the registrar for the IPO, while JM Financial Limited, CLSA India Private Limited, and ICICI Securities Limited serve as the book running lead managers.
8. Reservation of Shares
The IPO reserves 75 per cent of shares for Qualified Institutional Buyers (QIB), 15 per cent for Non-Institutional Investors (NII), and 10 per cent for Retail Investors.
9. Latest Grey Market Premium (GMP)
As of February 20th, 2024, the latest Grey Market Premium (GMP) for Juniper Hotels IPO stands at Rs 8. Considering the price band of Rs 360.00, the estimated listing price for Juniper Hotels IPO is Rs 368, suggesting an expected gain of 2.22 percent per share.
Juniper Hotels' IPO presents a promising investment opportunity in the hospitality sector. With its strong financial performance, established presence in major Indian cities, and strategic partnership with Hyatt Hotels Corporation, the company is poised for growth in the luxury hotel market. Investors looking to diversify their portfolio may consider Juniper Hotels IPO as a viable option.
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