US-listed online travel platform MakeMyTrip has raised $3.1 billion through equity and debt, according to Morgan Stanley, the company’s banker.
This is the largest ever fundraise by a listed new-age Indian company, surpassing Paytm which had raised around $2.4 billion through its IPO in 2021. This is also the largest concurrent offering of equity follow-on and convertible notes since 2022 in the Asia-Pacific region.
Earlier this week, MakeMyTrip had said in a regulatory filing that it is raising around $2.6 billion to buy back shares from China’s Trip.com and reduce its holding to around 20%.
On Friday, Morgan Stanley said funds have been raised through 18,400,000 ordinary equity shares priced at $90 per share and five-year convertible senior notes, at 0% coupon and 35% conversion premium. After the buyback, the stake of Trip.com stake in MakeMyTrip has dropped to 19.99% from 45.34%. Also, its board representation has also been reduced to two directors from five earlier.
Trip.com had first invested in MakeMyTrip in January 2016 with $180 million in convertible bonds. Then in 2019, Trip (then called Ctrip) acquired a 42% stake in a swap deal from Naspers. However, despite the sale, Trip.com remains MakeMyTrip’s largest minority shareholder.
Currently, MakeMyTrip co-founders Deep Kalra and Rajesh Magow hold around a 4.6% stake in the company. Kalra is the chairman and both serve on the board.
In FY25, Gurugram-headquartered MakeMyTrip reported its best numbers with total revenue rising 25% year-on-year to $978 million and a net profit of $95.2 million.