NASDAQ- listed Yatra Online files DRHP with SEBI for IPO; plans to raise more than Rs 750 crore

Yatra Online’s DRHP shows that the IPO of the company will consist of a fresh issue of Rs 750 crore and an OFS of up to 93,28,358 equity shares.

NASDAQ- listed Yatra Online files DRHP with SEBI for IPO; plans to raise more than Rs 750 crore
Yatra Online may go for a private placement ahead of the IPO.

NASDAQ-listed online travel service provider Yatra Online is now moving closer to a domestic IPO (initial public offering). The Indian unit of Yatra Online filed its draft red herring prospectus (DRHP) with the capital markets regulator SEBI last week. The DRHP shows that the company is planning to issue fresh equity shares along with an Offer For Sale (OFS) by existing shareholders of the company, including the promoter — THCL Travel Holding Cyprus. Yatra is a Gurugram based online travel agency and travel search engine that was founded in 2006. The company was listed on the NASDAQ in December 2016. 

Yatra Online’s DRHP shows that the IPO of the company will consist of a fresh issue of Rs 750 crore and an OFS of up to 93,28,358 equity shares. Of the OFS portion of the IPO, THCL Travel Holding Cyprus will offload upto  88,96,998 equity shares and the remaining 4,31,360 shares will be sold by Pandara Trust. The OFS portion of the issue will see 8.3% of the current total outstanding shares be sold. The DRHP shows that the average cost of acquisition of shares for THCL was Rs 136.35 per share and that of Pandara Trust was Rs 180.77 per share. 

Yatra Online may go for a private placement ahead of the IPO. 

Funds raised through the fresh issue of equity shares would be used for strategic investments, acquisitions and inorganic growth and for investment in customer acquisition and retention, technology, and other organic growth initiatives, the DRHP said. Of the IPO 75% will be reserved for Qualified Institutional Buyers (QIB) while 15% will be reserved for Non-Institutional Investors (NII). This leaves only 10% of the issue for retail investors. Yatra Online has been making losses for the last three financial years.

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SBI Capital markets Limites, DAM Capital Advisors Limited, and IIFL Securities Limited are the book running lead managers of Yatra Online’s IPO. Shares of the company, listed on the NASDAQ are up 10.4% so far this year at $1.91 per share. In the last two weeks, the stock has soared more than 30%.

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