Juniper Hotels IPO: 10 things to know before subscribing to Rs 1,800-crore issue

Juniper Hotels’ Rs 1,800 crore IPO, the biggest offer of 2024, so far, opens for subscription on February 21. The offer is entirely a fresh issue of 5 crore shares.

Here are 10 key things to know before subscribing to the offer:

1) IPO dates

The IPO will open for subscription on February 21 and close on February 23.

2) Price Band

The price band for the issue has been fixed at Rs 342-360 a share.

3) Offer details

Juniper Hotels plans to raise Rs 1,800 crore through via a fresh issue of 5 crore shares. The anchor book will open for a day on February 20.

4) Objectives of issue

The company will use the proceeds to repay its loans and those of its recent acquisitions— CHPL and CHHPL. The remaining funds will be used for general corporate purposes.

5) Lot Size

Investors can bid for a minimum of 40 shares and in multiples of 40 thereof. Hence the minimum investment by retail investors would be Rs 13,680 (40  x 342). At the upper end, the bidding amount will go up to Rs 14,400.

6) Company Profile

Juniper Hotels is a luxury hotel development and ownership company and is the largest owner by the number of keys of Hyatt-affiliated hotels in India as of September 30, 2023. The company has a portfolio of seven hotels and serviced apartments as of September 30, 2023.

7) Financials

It reported a net loss of Rs 1.5 crore for FY23, significantly lower from Rs 188 crore in the previous year. Revenue more than doubled to Rs 666.85 crore  from FY22.

However, for the six months ended September 2023, net loss widened to Rs 26.5 crore from the year-ago period. Total borrowings in the same period stood at 2,252.74 crore.

8) BRLMs and Promoters

The lead managers to the IPO are JM Financial, CLSA India and ICICI Securities, while Kfin Technologies is the registrar. The company's promoters are Arun Kumar Saraf, Saraf Hotels, Two Seas Holdings and Juniper Investments.

9) Risks

(i) The company and its subsidiary, MHPL, have incurred losses in the past and if they continue to do so, consolidated results of operations, cash flows and financial condition will continue to be adversely affected.

(ii) The wholly owned subsidiary, CHPL, has witnessed delays in the repayment of loans in the past.

(iii) Total borrowings in H1FY24 stood at 2,252.74 crore.

10) Listing Date

The basis of allotment will be finalised by February 26, shares credited to demat accounts by February 27 and the stock is expected to list on the NSE and BSE on February 28, as per the RHP.