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It is the largest Hyatt-affiliated owner in the country.
The IPO, with a face value of Rs 10, is entirely a fresh issue of equity shares up to Rs 1800 crore with no offer for sale (OFS) component.
The issue is being made through the book-building process, wherein not less than 75% of the issue shall be available for allocation on a proportionate basis to qualified institutional buyers, not more than 15% of the issue shall be available for allocation to non-institutional investors, and not more than 10% of the issue shall be available for allocation to retail individual investors.
As per the DRHP, the proceeds from the fresh issue to the tune of Rs 1500 crore will be used for repayment, prepayment, or redemption, in full or in part, of certain outstanding borrowings availed by the company and its subsidiaries and for general corporate purposes.
Juniper Hotels, is jointly owned by Saraf Hotels, Juniper Investments and Hyatt Hotels Corporation via its indirect subsidiary Two Seas Holdings which holds 50% of the pre Issue Equity Share Capital.
Founded by Arun Kumar Saraf, its chairman and managing director, and led by Varun Saraf who is the CEO, responsible for the overall hotel development and asset management, Juniper is the only hotel development company in India in which Hyatt has made a strategic investment.Saraf Group and Hyatt have a longstanding relationship spanning over four decades and dating back to the first Hyatt Hotel that was opened in New Delhi in 1982.
It has developed 12 hotels in India and Nepal, including those owned by Juniper.
As of June 30, Juniper has a portfolio of seven hotels and service apartments and operates a total of 1,836 keys. It owns 20% of Hyatt group-affiliated hotel rooms in India as of June 30, 2023, according to a Horwath Report mentioned in the DRHP.
Its luxury properties include the Grand Hyatt Mumbai Hotels and Residences, and Andaz Delhi; upper-upscale properties include the Hyatt Delhi Residences, Hyatt Regency Ahmedabad, Hyatt Regency Lucknow, and Hyatt Raipur; and upscale properties include the Hyatt Place Hampi. It plans to bring more luxury and upscale hotels and service apartments into its portfolio either via assets being transferred by Saraf Hotels and newer opportunities.
It will be adding a new ballroom at Grand Hyatt Mumbai and additional rooms and apartments in both Grand Hyatt Mumbai and Hyatt Regency Ahmedabad.
For the fiscal year 2023, the total income has been recorded at Rs 827.8 crore. Its losses narrowed substantially to Rs 1.2 crore in fiscal year 2023 from Rs 188 crore in fiscal year 2022. It has one of the highest EBITDA margins amongst hotel owner companies in FY 2023, as per the DRHP.
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 the offer. The equity shares are proposed to be listed on the BSE and NSE.
Following a strong rebound of the travel and hospitality sector, a slew of companies have or are planning to go public. Recently, The initial public offering of Samhi Hotels opened for subscription from September 14 to September 18. The offer comprised of fresh shares worth Rs 1,200 crore and another 13.50 million shares offered for sale by the company’s existing shareholders. Gurugram headquartered Yatra Online Limited saw its initial public offering open for public participation on September 15. The issue comprised of a fresh issue size of Rs 602 crore and an offer for sale of upto 12,183,099 equity shares.
In Fiscal 2022, the GDP contribution of the hotel sector is estimated at $40 billion, with a projected increase to $ 1 trillion by 2047 as the demand for hotel rooms and services will benefit from and support economic development initiatives and investments across India, according to the Horwath report.
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