Yatra Online IPO booked over 62% on day 3; issue closes for bidding today

The primary offering (IPO) of Yatra Online continued to witness a muted response from the investors during the third and last day of the bidding process. The company is looking to raise Rs 775 crore from its initial primary offering (IPO). The issue opened for bidding on Friday, September 15 and will close for today, that is Wednesday, September 20.

Yatra Online is offering its shares in the price band of Rs 135-142 and investors can make a bid of a minimum of 105 equity shares and its multiples thereafter. The issue comprises a sale of fresh equity shares amounting to Rs 602 crore, while an offer-for sale (OFS) component of up to 1.21 crore equity shares worth Rs 173 crore.

According to the data, the investors made bids for 1,90,47,525 equity shares, or 62 per cent, compared to the 3,09,42,356 equity shares offered for the subscription by 1.00 pm on Wednesday, September 20. The issue had ended day one with 12 per cent subscription, while by the end of day two, it was booked 32 per cent.

The allocation for retail investors was booked 1.80 times, while the portion for qualified institutional bidders (QIBs) saw a subscription of 46 per cent. However, the portion reserved for non-institutional investors was not booked only 14 per cent as of the same time.

Yatra Online, which was Incorporated in 2005, provides information, pricing, availability, and booking facilities for domestic and international customers. The company provides domestic and international air ticketing on domestic and international airlines, as well as bus ticketing, rail ticketing, cab bookings, and other services.

Despite a busy primary market session, the company was commanding no grey market premium according to multiple sources. Brokerage firms have a mixed view on the issue of Yatra Online as it has attracted both viewpoints from the analysts.

Religare Broking has a 'neutral' tag on the issue as it sees the company to continue to invest in its common technology platform and introduce new product offerings in an efficient and timely manner. On the other hand, Swastika Investmart has suggested to avoid issue citing its risk factors and profitability only in FY23.

A day before its IPO, Yatra Online mopped up Rs 348.75 crore by allocation of 2,45,59,860 equity shares at a price of Rs 142 per share to 33 anchor investors. SBI Capital Markets, DAM Capital Advisors and IIFL Securities are the book-running managers to the issue, while Link Intime India has been appointed as the registrar to the issue.

StoxBox said that with the growth in the tourism industry, we expect the online travel market share (OTA) to increase faster than captive players, improving the company's profitability. "With the company posting profits in FY23 and strong revenue growth in the past, we remain positive on the company from a medium to long-term perspective," it said with a 'subscribe' rating.


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