Juniper Hotels, which runs hotels under the “Hyatt” brand, has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise INR 1,800 crore through an initial public offering (IPO). Juniper Hotels IPO with a face value of INR 10 is entirely through a fresh issue of equity shares with no Offer for Sale (OFS) component.
Juniper Hotels proposes to use the net proceeds of INR 1,500 crore towards repayment, prepayment, or redemption, in full or in part, of certain outstanding borrowings (including payment of the interest accrued thereon) availed by the company and its subsidiaries and for general corporate purposes.
The company had filed preliminary IPO papers with SEBI on September 28, 2023 and received final regulatory approval on January 29, 2024.
Pre-IPO Placement on Cards
Juniper Hotels, in consultation with the lead bankers to the issue, may consider a further issue of equity shares on a private placement for cash consideration aggregating up to INR 350 crore (“Pre-IPO Placement”). If such placement is completed, the fresh issue size will be reduced.
Juniper Hotels IPO – Unique Partnership with Hyatt
Juniper Hotels is co-owned by Saraf Hotels Limited and Two Seas Holdings Limited, an affiliate of the prominent global hospitality entity, Hyatt Hotels Corporation. The partnership is unique as Hyatt owns 50% of Juniper Hotels through Two Seas Holdings. It functions as a luxury hotel development and ownership enterprise, and owns 1,836 “Hyatt” affiliated hotel keys in India as of June 30, 2023, as outlined in the Horwath Report cited in the DRHP. The company manages a diverse portfolio consisting of seven hotels and serviced apartments.
The company’s hotels and serviced apartments span across various categories including luxury, upper upscale, and upscale, located across six strategic cities in Mumbai, Delhi, Ahmedabad, Lucknow, Raipur, and Hampi. Notably, the Grand Hyatt Mumbai Hotel and Residences holds the distinction of being the largest hotel in India.
Juniper Hotels IPO – Operational Turnaround
For the fiscal year 2023, revenue from operations increased by 116.03% to INR 666.85 crore against INR 308.69 crore a year ago. Net loss narrowed to INR 1.5 crore in fiscal 2023 over INR 188.03 crore in fiscal 2022.
JM Financial Limited, CLSA India Private Limited, and ICICI Securities Limited are the book-running lead managers, and KFin Technologies Limited is the registrar of Juniper Hotels IPO. The equity shares are proposed to be listed on the BSE and NSE.
Hospitality Turnaround
Hospitality sector is witnessing a strong turnaround lately and this is also reflected in the primary market action. Apeejay Surrendra Park Hotels – another player from this industry – has already launched its IPO. Like Juniper Hotels, the operator of Park Hotels has also reported strong financial numbers in the latest period. Given the high visibility of the Hyatt brand name, Juniper Hotels IPO will be closely watched.
