Juniper Hotels IPO sails through on QIB bidding

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The ₹1,800-crore initial public offering of Juniper Hotels was subscribed fully on the last day of issue closing on Friday, thanks to qualified institutional buyers. The IPO saw a lukewarm response from non-institution investors whose portion was undersubscribed at 0.85 times. The IPO came out with a price band of ₹342-360 . The entire offer is fresh issue.

The issue of Juniper Hotels, which owns the Hyatt brand, received bids for 6.01 crore shares against an offer of 2.89 crore shares (net off anchor portion).

While retail investors’ portion received bids for 1.28 times, that of QIBs 2.96 times. The company had raised ₹810 crore from anchor investors.

Funds raised will be utilised towards repayment/ prepayment/ redemption, in full or in part, of certain outstanding borrowings availed by the company and subsidiaries, namely Chartered Hotels Pvt Ltd and Chartered Hampi Hotels Pvt Ltd along with general corporate purposes.

The company is promoted by Saraf Hotels Ltd and its affiliates, Juniper Investments Ltd and Two Seas Holdings Ltd, an indirect subsidiary of a global hospitality company Hyatt Hotels Corporation. The company owns and manages a portfolio consisting of seven hotels and serviced apartments and operates a total of 1,836 keys of “Hyatt”-affiliated hotel keys in India as of September 30, 2023.