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Business News/ Markets / Ipo/  Juniper Hotels IPO Day 2: Issue booked 14% so far; check GMP, subscription status, other details; should you subscribe?

Juniper Hotels IPO Day 2: Issue booked 14% so far; check GMP, subscription status, other details; should you subscribe?

Juniper Hotels IPO worth ₹1,800 crore is a fresh issue with no offer-for-sale component. Proceeds to be used for corporate purposes, repayments, and recent acquisitions. GMP at +8, indicating a premium of ₹8 in the grey market.

Juniper Hotels IPO opened for subscription on Wednesday, February 21, and will close on Friday, February 23.Premium
Juniper Hotels IPO opened for subscription on Wednesday, February 21, and will close on Friday, February 23.

Juniper Hotels IPO opened for subscription on Wednesday, February 21, and is witnessing sluggish response from investors. The public issue will close on Friday, February 23.

Juniper Hotels Ltd is a luxury hotel development and ownership company operating in luxury, upper upscale and upscale category of hotels across various locations in India, namely Mumbai, Delhi, Ahmedabad, Lucknow, Raipur and Hampi.

As per the RHP, the company's listed peers are Chalet Hotels Limited (with a P/E of 84.37), Lemon Tree Hotels Limited (with a P/E of 95.52), The Indian Hotels Company Limited (with a P/E of 66.78), and EIH Limited (with a P/E of 58.71).

Also Read: Juniper Hotels IPO opens: GMP, issue details, 10 key things to know before subscribing to 1,800-crore issue

Juniper IPO price band has been fixed in the range of 342 to 360 per equity share of face value of 10. Juniper IPO lot size is 40 equity shares and in multiples of 40 equity shares thereafter. Juniper Hotels IPO raised 810 crore from anchor investors on Monday, February 20. The company notified the bourses that it allocated 2,25,00,000 equity shares at 360 per share to anchor investors.

Also Read: Juniper Hotels Limited raises 810 crore from anchor investors ahead of IPO

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Juniper Hotels IPO details.
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Juniper Hotels IPO details.

Juniper Hotels IPO has reserved not less than 75% of the shares in the public issue for Qualified Institutional Buyers (QIB), not more than 15% for Non Institutional Investors (NII), and not more than 10% of the offer is reserved for Retail Investors.

Between March 31, 2022, and March 31, 2023, Juniper Hotels Limited's profit after tax (PAT) climbed by 99.2% and its revenue increased by 1086.6%, respectively.

Juniper Hotels IPO subscription status today 

Juniper Hotels IPO subscription status today was 14% so far as the issue received bids for 41.70 equity shares against 2.89 crore shares on offer, as per data available on NSE till 11:15 am.

The retail investors' portion has been subscribed 68%, Non Institutional Investors' (NII) portion is booked 7%, and Qualified Institutional Buyers (QIB) are yet to bid for the Juniper Hotels IPO so far on Thursday, the second day of the bidding process.

Juniper Hotels IPO details

Juniper Hotels IPO, which is worth 1,800 crore, completely comprises a fresh issue, and there is no offer-for-sale component.

The company plans to utilise the net proceeds of the issue for the following purposes: General corporate purposes; full or partial repayment, prepayment, or redemption of certain outstanding borrowings incurred by the company and our recent acquisitions, Chartered Hotels Private Limited and Chartered Hampi Hotels Private Limited.

The registrar for the Juniper Hotels IPO is Kfin Technologies Limited, while the book running lead managers are JM Financial Limited, CLSA India Private Limited, and ICICI Securities Limited.

Also Read: Juniper Hotels IPO: Price band set at 342-360 per share; check GMP, key dates, issue details, more

Juniper Hotels IPO GMP today

Juniper IPO GMP today, or grey market premium today, is 6 per share. This indicates Juniper Hotels share price was trading at a premium of 6 in the grey market, as per market observers.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Juniper Hotels shares was indicated at 365 apiece, which is 1.4% higher than the IPO price of 360.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Also Read: Juniper Hotels IPO opens next week. GMP, price, other details of upcoming IPO

Juniper Hotels IPO Review

Juniper Hotels is valued at FY24 annualised EV/EBITDA multiple of 18.5x at the upper price band on post-issue capital. The company is planning to expand its Grand Hyatt Mumbai hotel with 293 additional rooms and 24 serviced apartments within the next three years (by FY27). This expansion will contribute to the company's revenue growth.

The company’s RevPAR/ARR has increased to 7,479/9,875 in FY23 from 3,345/6,222 in FY22. It plans to reduce its debt substantially from IPO proceeds which will turn the business profitable, said SBI Securities. 

It recommend investors to subscribe to the issue for the long term investment horizon. 

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.

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Published: 21 Feb 2024, 07:44 AM IST
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