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Juniper Hotels, a prominent luxury hotel development and ownership company, made its debut on the domestic market as its shares were listed today.
Despite a tepid response from investors during the Initial Public Offering (IPO), the stock entered the market with an IPO price of Rs 360.
It opened at Rs 361.20 on the BSE and Rs 365 on the NSE, resulting in a modest listing gain of approximately 1 percent for IPO investors.
Post-listing, the shares experienced a slight surge, reaching Rs 381.70 on the NSE, translating to a 6.02 percent profit for IPO investors.
The subdued response during the IPO subscription period may have contributed to the modest listing gains.
Juniper Hotels’ IPO, valued at Rs 1,800 crore, was open for subscription from February 21 to February 23.
Despite the mixed response from investors, the IPO was oversubscribed 2.18 times overall. Qualified Institutional Buyers (QIB) subscribed 3.11 times, Non-Institutional Investors (NII) at 0.89 times, and retail investors at 1.31 times.
The IPO involved the issuance of 5 crore new shares with a face value of Rs 10 each, and the capital raised would be allocated towards loan repayment and general corporate purposes.
In the Red Herring Prospectus (RHP), Juniper Hotels disclosed its operations encompassing 1836 rooms across major cities like Mumbai, Delhi, Ahmedabad, Lucknow, Raipur, and Hampi.
The company has strategic partnerships with Saraf Hotels and affiliates, as well as with Hyatt Hotels Corporation.
As of September 2023, Juniper Hotels boasts a portfolio of seven hotels and serviced apartments.
Despite facing a net loss of Rs 1.5 crore in the financial year 2023, the company showcased improvement compared to the net loss of Rs 188 crore in FY 2022.
Notably, the operational revenue surged from Rs 308.7 crore to Rs 666.85 crore during this period, indicating robust growth in the company’s top line.
The funds raised through the IPO are expected to enhance Juniper Hotels’ financial position and facilitate further expansion in the luxury hospitality sector.
Investors will keenly observe the company’s performance in the post-listing period as it navigates the challenges and opportunities in the dynamic hospitality industry.
Source:
Juniper Hotels IPO Listing: Stock list at 1% premium to IPO price
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