Online travel operator Yatra Online Ltd on Friday filed the draft prospectus for its initial public offering (IPO) in India, amid improving outlook for the domestic travel industry as cases of covid-19 recede.
Yatra is currently listed on Nasdaq. The IPO will see the company raise fresh capital of ₹750 crore for strategic investments, acquisitions and inorganic growth; investment in customer acquisition and retention, technology, and other organic growth initiatives, as well as other purposes.
Additionally, promoter entities of the company plan to sell 9.33 million shares through an offer for sale in the IPO.
Collectively, the total size of the IPO is expected to be around ₹1,000 crore, a person aware of the company’s fundraising plans said on condition of anonymity.
“Our company is India’s largest corporate travel services provider and the second-largest online travel firm in India among key OTA players in terms of gross booking revenue and operating revenue for fiscal 2020. We have the largest number of hotel and accommodation tie-ups among OTA players—over 2,094,000 tie-ups as of 29 October 2021 (source: Crisil report),” the company said in its draft prospectus.
The company said it has approximately 700 large corporate customers and over 46,000 registered SME customers. As of 30 September, Yatra had over 28,000 registered travel agents.
The company has 93,500 hotels and homestays contracted in approximately 1,400 cities across India. In fiscal 2021, more than 500,000 standalone hotel room nights were booked through its platforms, while more than 350,000 room nights were booked from April to September 2021.
“We believe India is one of the world’s largest and fastest-growing economies, with a large middle class, increasing disposable income and a rapidly growing online consumer segment. India’s GDP growth is expected to rebound to 9.5% in FY22 from a decline of 7.3% in FY21. Given the size and growth dynamics of the travel market, we have strategically focussed both on corporate and consumer markets,” the draft prospectus said.
The company reported revenue of ₹89.4 crore and a loss of ₹19 crore in the six months to September. In FY21, the company reported a revenue of ₹143.6 crore and a loss of ₹118.6 crore due to the impact of covid-19. The pandemic has seen the company’s revenue drop significantly from ₹694.2 crore in FY20.
“In the six months to September 2021, from B2B businesses and in fiscals 2021, 2020, and 2019, we generated 66.22%, 71.19%, 38.82%, and 40.83%, of our revenues from operations from air ticketing, 17.73%, 12.48%, 45.66%, and 47.39% of our revenues from hotels and packages and 16.05%, 16.33%, 15.52% and 11.78% of our revenues from operations from the sale of other services,” the company said in its draft prospectus. Investment banks SBI Capital, DAM Capital and IIFL Securities are advising the company on its share sale.
Yatra’s rival Ixigo filed for a ₹1,600 crore IPO in August. In December, RateGain Travel Technologies, which provides tech services to travel and hospitality firms, raised ₹1,336 crore through its share sale.
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