US-listed Indian travel firm MakeMyTrip is raising over $2.6 billion through a concurrent sale of equity shares and convertible bonds, as it looks to buy back a portion of the stake held by China’s Trip.com Group.
According to the company’s filings with Nasdaq, MakeMyTrip plans to launch a primary offering of 14 million equity shares along with convertible bonds worth up to $1.25 billion. The final price of the equity shares is yet to be determined.
At the current share price of $100.88, the sale of 14 million shares is expected to fetch around $1.4 billion. Combined with the proceeds from the convertible bonds, the total fundraising is likely to exceed $2.6 billion.
The entire proceeds from this round will be used to repurchase a portion of the Class B shares held by Trip.com Group.
As part of the transaction, Trip.com has agreed to a 180-day lock-up period, with standard exceptions.
According to sources, this move is expected to reduce Trip.com’s holding in MakeMyTrip to below 20%, down from its current 45.34%. However, even after the transaction, Trip.com will remain MakeMyTrip’s largest minority shareholder.
In a statement, Trip.com said, “This is part of the Company’s efforts to optimize its investment portfolio and enhance shareholder returns.”
The Morgan Stanley-backed Chinese travel firm first invested in MakeMyTrip in 2016. Its stake significantly increased in 2019, when it rose to 49% following a strategic equity swap with Naspers.
In recent years, several Indian companies have been scaling back Chinese ownership amid tightening regulatory oversight. Paytm, for example, reduced Ant Group’s stake from 25% to 5%. Zomato has seen complete exits by Alibaba and Fosun, while BigBasket and Delhivery have also facilitated exits for their Chinese investors.
Gurugram-headquartered MakeMyTrip has experienced a strong post-Covid recovery, driven by a surge in travel demand and increased business mobility.
In FY25, the company posted its strongest performance yet, with total revenue rising 25% year-on-year to $978 million and net profit climbing to $95.2 million.