Juniper Hotels Receives SEBI Approval for ₹1,800 Crore IPO

Juniper Hotels, operating under the esteemed brand 'Hyatt,' has received the final nod from India's capital markets regulator, Securities and Exchange Board of India (SEBI) for its initial public offering (IPO). The company aims to raise ₹1,800 crore through this IPO which was initially filed on September 28, 2023.

Juniper Hotels Details

The IPO with a face value of ₹10 involves a fresh issue of equity shares without any Offer for Sale (OFS) component. In addition Juniper Hotels may explore a private placement for cash consideration potentially reducing the fresh issue size to ₹350 crore. The net proceeds of ₹1,500 crore from the IPO will be allocated towards repaying borrowings and meeting general corporate needs.

Back in March 2023, Juniper Hotels and its subsidiary MHPL had debts totaling ₹2,045.6 crore and subsidiaries CHPL and CHHPL had debts of ₹201.8 crore. Fast forward to 20 September, Juniper Hotels acquired 100 percent ownership of CHPL, means CHPL and its subsidiary CHHPL are now officially part of the Juniper Hotels family.

JM Financial Limited, CLSA India Private Limited and ICICI Securities Limited are the appointed book running lead managers while KFin Technologies Limited serves as the registrar of the offer. Juniper Hotels are set to be listed on both the BSE and NSE.

About Juniper Hotels

Co-owned by Saraf Hotels Limited and Two Seas Holdings Limited an affiliate of global hospitality giant Hyatt Hotels Corporation, Juniper Hotels specializes in luxury hotel development and ownership. As of June 30, 2023, Juniper Hotels holds a 20% ownership stake in the collective 1836 "Hyatt" affiliated hotel keys in India. This information is derived from the Horwath Report referenced in the Draft Red Herring Prospectus (DRHP).

Saraf Hotels, along with its affiliate Juniper Investments, collectively owns half (50%) of Juniper Hotels. The other 50% stake is held by Two Seas Holdings, which is an indirect subsidiary of the globally renowned Hyatt Hotels Corporation.

Juniper Hotels boasts a diverse portfolio managing seven hotels and serviced apartments across cities like Mumbai, Delhi, Ahmedabad, Lucknow, Raipur and Hampi. Grand Hyatt Mumbai Hotel and Residences stands as the largest hotel in India.

Financial Performance Highlights

In the fiscal year 2023, Juniper Hotels witnessed a remarkable 116.03% increase in revenue from operations reaching ₹666.85 crore compared to ₹308.69 crore the previous year. The company also narrowed its net loss reporting ₹1.5 crore in fiscal 2023, an improvement from ₹188.03 crore in fiscal 2022.

With JM Financial Limited, CLSA India Private Limited, and ICICI Securities Limited guiding the IPO process, Juniper Hotels looks set to make a significant impact on the Indian capital markets, backed by its strong financials and strategic positioning in the luxury hospitality sector.