Nasdaq-listed travel services company MakeMyTrip has begun the process of listing its Indian business on domestic stock exchanges by confidentially filing a DRHP with the Securities and Exchange Board of India (SEBI), the BSE and the NSE.
The company disclosed the development in a regulatory filing with the US Securities and Exchange Commission (SEC) on July 17. Though, the company confirmed the proposed initial public offering (IPO), it did not disclose the size of the issue.
A confidential filing allows companies to submit draft offer documents to the market regulator for review without making them public immediately, helping protect sensitive business and financial information during the early stages of the listing process.
Existing shareholders to sell stake
The proposed IPO will involve the sale of equity shares in MakeMyTrip (India) Limited by its parent, MakeMyTrip Limited, and its wholly-owned subsidiary, ibibo Group Holdings (Singapore) Pte. Ltd.
“The proposed initial public offering is expected to involve a sale of equity shares in MMT India by MakeMyTrip and its wholly-owned subsidiary, ibibo Group Holdings (Singapore) Pte. Ltd. Upon completion of the proposed initial public offering, MMT India will continue to be a subsidiary of MakeMyTrip and will be included in MakeMyTrip’s consolidated financial statements,” the company said in a statement.
Funds to support future growth
According to the filing, the listing is expected to strengthen MakeMyTrip India’s brand visibility and helping it attract and retain talent in the competitive technology sector.
“MakeMyTrip expects the proposed initial public offering and listing of MMT India to enhance its brand visibility and support MMT India’s ability to incentivize and promote talent in a competitive technology recruitment landscape. The net proceeds received by MakeMyTrip and ibibo Holdings from the sale of shares in MMT India will further strengthen the cash position of MakeMyTrip and are expected to be utilized for long-term growth, strategic inorganic initiatives and repurchases of different classes of securities (including convertible securities) by MakeMyTrip. Subject to regulatory approvals, MakeMyTrip and MMT India may evaluate alternatives in medium-term to enable our respective shareholders to enjoy the benefits of a security at MMT India level that is fungible and listed across India and US capital markets.”
Travel business spans multiple brands
MakeMyTrip has been listed on Nasdaq since 2010 and operates some of India’s best-known online travel platforms, including MakeMyTrip, Goibibo and redBus. Its digital platform allows customers to book flights, hotels, holiday packages, buses, trains, car rentals, tours and attractions, along with services such as foreign exchange, visa processing, travel insurance and travel assurance.
The company follows an asset-light marketplace model, connecting travellers with airlines, hotels, accommodation providers and transport operators. Besides its strong presence in India, it also operates a growing travel business in the United Arab Emirates, while redBus has expanded into select markets across Southeast Asia and Latin America.
