Yatra-Online-Limited-IPO
Do you love travelling? If yes, you would have definitely checked out Yatra.com to make your travel plans. After the Covid lockdowns, the world saw a flood of travelers trying to catch up on the missed time and this rush still seems to be going on. Investors too can be part of this travel boom with the latest IPO opportunity from Yatra Online Limited.
Yatra Online Limited IPO was open for subscription from 15th September 2023 to 20th September 2023. The issue was booked 39% as of the final day of subscription.
Here are all the important details of Yatra Online Limited IPO, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.
The key details of Yatra Online Limited IPO are as under.
The size of the IPO and different categories of the issue are:
| Category | Details |
| IPO Opening Date | 15th September 2023 |
| IPO Closing Date | 20th September 2023 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face value of shares | Re. 1 per share |
| IPO Price Band | Rs. 135 – Rs. 142 per share |
| IPO Size | Rs. 775 crores |
| Offer for Sale | Rs. 173 crores |
| Fresh Issue | Rs. 602 crores |
The important dates for Yatra Online Limited IPO are highlighted below:
| Event | Date |
| Opening date | 15th September 2023 |
| Closing Date | 20th September 2023 |
| Allotment date | 25th September 2023 |
| Refund Date | 26th September 2023 |
| Share Credit Date | 27th September 2023 |
| Listing Date | 29th September 2023 |
Investors can subscribe to Yatra Online Limited IPO shares in pre-defined lots. The details of the lot sizes for this IPO are mentioned below:
| Category | Details |
| Investments in lots | Minimum – 1 lotMaximum – 13 lots |
| Investment amount | Minimum – Rs. 14,175 – 14,910Maximum – Rs. 1,93,830 |
| Shares | Minimum – 105Maximum – 1365 |
Here’s the summary of reservation for different applicant categories in this IPO:
| Category of Investor | Reservation Percentage |
| Retail Individual Investor | 10% |
| QIB (Qualified Institutional Buyer) | 75% |
| NII (Non-Institutional Bidders) | 15% |
This IPO is a combination of Offer for Sale and Fresh Issue. The objectives of the IPO are mentioned below,
Established in 2005, Yatra Online Limited is a company that offers a wide range of services to both domestic and international customers. They provide information, pricing, availability, and booking options for various travel-related needs.
Yatra Online’s services encompass domestic and international air ticket bookings on Indian and international airlines, as well as bus and rail ticket reservations. Additionally, they facilitate cab bookings and offer various ancillary services within India. Their offerings extend to accommodations, including hotels and homestays, with an impressive portfolio of about 105,600 hotels in 1,490 cities and towns across India as of Fiscal 2023. Moreover, they offer access to more than two million hotels worldwide through their website, mobile applications, corporate SaaS platform, and related platforms.
Yatra Online boasts a substantial network of over 94,000 contracted hotels and homestays in approximately 1,400 cities throughout India. When it comes to domestic hotels, Yatra Online holds the distinction of being India’s largest platform. Recently, Yatra Online ventured into the freight forwarding business with the launch of Yatra Freight, further broadening its corporate service offerings.
Yatra Online caters to a diverse clientele, serving B2B and B2C customers. This approach allows them to target India’s most frequent and high-spending travellers, particularly educated urban consumers. In Fiscal 2023, the company’s customer base includes over 813 corporate clients and more than 49,800 registered SME customers. Yatra Online ranks as the third largest consumer online travel company (OTC) in India in terms of gross booking revenue. Additionally, they boast the largest number of hotel and accommodation partnerships among key domestic OTA players, with over 2,105,600 tie-ups.
Yatra Online Limited ’s financials are given in the table below:
| Year | Total Assets (Rs. in cr) | Revenue from Operations (Rs. in cr) | Profit After Tax (Rs. in cr) | Basic EPS | Return on Net Worth |
| Mar-2023 | 681 | 380 | 8 | Rs.0.69 | 4.50% |
| Mar-2022 | 548 | 198 | (31) | Rs.2.76 | (30.50)% |
| Mar-2021 | 563 | 125 | (119) | Rs.11.08 | (96.26)% |
(Source: RHP)
Some of the key strengths of Yatra Online Limited IPO that investors can take note of are
| Category | Details |
| Business model | The company has an integrated technology platform that offers a comprehensive selection of services and products and serves a large and loyal customer base.One of Yatra Online’s significant strengths lies in its effective and cohesive multi-channel strategy for reaching both corporate and leisure travellers in the market. |
| Other merits | Yatra Online is a trusted brand and they have a proven track record and targeted marketing strategy supported by an experienced management team. |
Here are some of the risks that investors of Yatra Online Limited IPO should know:
| Category | Details |
| Business viability and profitability | Yatra Online Limited plans to use the Net Proceeds for potential acquisitions without specific targets, raising the risk of insufficient funds and potential delays in these growth initiatives.Past financial losses may jeopardize the company’s future stability, while its dependence on a limited number of Indian airline suppliers and the fierce competition in the Indian travel industry could pose ongoing risks to its competitiveness. |
| Other concerns | Yatra’s B2B business, accounting for 28.25% of their Adjusted Margin in 2023, is susceptible to shifts in traveller preferences, telepresence adoption, cost considerations, and changing spending habits, which can affect travel and hotel demand.Yatra Online Limited might struggle to sustain its competitiveness in the fiercely competitive Indian travel industry, with the possibility of facing reduced or eliminated commissions and fees from airline suppliers, including their GDS service providers, for air ticket sales. |
As of September 20th, 2023, the grey market premium for the shares of Yatra Online Limited IPO is Rs. 0 as per market observers. This means the shares are not expected to list at a premium over the listing cap price of Rs. 142.
Yatra Online Limited is one of the biggest names as an online travel partner site with many domestic and international tie-ups attracting a huge customer base. The company posted huge losses in FY 2021 but has managed to recover the same by FY 2023. Investors should consider the overall financial performance of the company and that of its listed peers to make an effective investment decision.
Investors can invest in this IPO through the Fisdom app.
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