Juniper Hotels Plans Rs 1,800 Crore IPO to Reduce Debt

Juniper Hotels Ltd (JHL) has submitted preliminary documents to the Securities and Exchange Board of India (SEBI) to raise Rs 1,800 crore (approximately $240 million) through an initial public offering (IPO). The company operates hotels under the Hyatt brand and is co-owned by Saraf Hotels Limited and Two Seas Holdings Limited, which is affiliated with Hyatt Hotels Corporation.

The IPO will consist solely of a fresh issue of equity shares, without any Offer for Sale (OFS) component. As outlined in the Draft Red Herring Prospectus (DRHP), the offering will be conducted via a book-building process, with at least 75% allocated to qualified institutional buyers, no more than 15% for non-institutional investors, and up to 10% earmarked for retail individual investors.

In collaboration with the leading bankers on the issue—JM Financial Limited, CLSA India Private Limited, and ICICI Securities Limited—Juniper Hotels is considering the possibility of a further issuance of equity shares through private placement, potentially raising up to Rs 350 crore (around $46 million). If this placement occurs, the size of the fresh issue will be adjusted accordingly.

The net proceeds of Rs 1,500 crore (approximately $200 million) from the IPO are intended for repaying, prepaying, or redeeming certain outstanding borrowings of the company and its subsidiaries, with a portion allocated for general corporate purposes.

Juniper Hotels manages a varied portfolio that includes seven hotels and serviced apartments, holding 20% of the 1,836 Hyatt-affiliated hotel keys in India as of June 30, 2023. Their properties are categorized into luxury, upper upscale, and upscale, spread across six key cities: Mumbai, Delhi, Ahmedabad, Lucknow, Raipur, and Hampi.

For the fiscal year 2023, the company saw its revenue from operations more than double to Rs 666.85 crore, up from Rs 308.69 crore the previous year. The net loss for fiscal 2023 narrowed to Rs 1.5 crore compared to Rs 188.03 crore in fiscal 2022.

The equity shares of Juniper Hotels are expected to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).