Juniper Hotels IPO: Check out 10 key things to know from RHP before investing
Juniper Hotels IPO has reserved not less than 75% of the shares in the public issue for Qualified Institutional Buyers (QIB), not more than 15% for Non Institutional Investors (NII), and not more than 10% of the offer is reserved for Retail Investors.
Juniper IPO price band has been fixed in the range of ₹342 to ₹360 per equity share of face value of ₹10. Juniper IPO lot size is 40 equity shares and in multiples of 40 equity shares thereafter.
Also Read: Juniper Hotels IPO: GMP, subscription status to review. Should you apply?
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Juniper Hotels IPO, which is worth ₹1,800 crore, completely comprises a fresh issue, and there is no offer-for-sale component.
The company plans to utilise the net proceeds of the issue for the following purposes: General corporate purposes; full or partial repayment, prepayment, or redemption of certain outstanding borrowings incurred by the company and our recent acquisitions, Chartered Hotels Private Limited and Chartered Hampi Hotels Private Limited.
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Here are 10 key things from the Red Herring Prospectus (RHP) that investors might want to know before subscribing to the issue.
Juniper Hotels IPO Promoters
The company’s Promoters are Arun Kumar Saraf, Saraf Hotels Limited, Two Seas Holdings Limited, and Juniper Investments Limited, according to the Red Herring Prospectus (RHP). The corporate promoters own 172,502,384 equity shares in total as of the RHP date of February 13, 2024, which is 100% of the pre-issue issued, subscribed, and paid-up equity share capital of the business.
Juniper Hotels IPO Peers
As per the RHP, the company’s listed peers are Chalet Hotels Limited (with a P/E of 84.37), Lemon Tree Hotels Limited (with a P/E of 95.52), The Indian Hotels Company Limited (with a P/E of 66.78), and EIH Limited (with a P/E of 58.71).
Juniper Hotels Business
Juniper Hotels Ltd is a luxury hotel development and ownership company operating in luxury, upper upscale and upscale category of hotels across various locations in India, namely Mumbai, Delhi, Ahmedabad, Lucknow, Raipur and Hampi.
According to the RHP, as of September 30, 2023, Juniper Hotels operated 1,836 keys across seven hotels and serviced apartments. The company benefits from a special and long-standing partnership that spans more than 40 years between affiliates of the highly regarded premier hospitality brand Hyatt Hotels Corporation and Saraf Hotels (including former and current affiliates, collectively referred to as the “Saraf Group”), a hotel developer with a solid track record in India.
Hyatt has a strategic stake solely in Juniper Hotels, the only hotel development firm in India. According to the Horwath Report, as of September 30, 2023, Juniper Hotels owned 19.6% of the rooms and apartments associated with the Hyatt company in India.
Juniper Hotels IPO Industry
In theirRHP, the company emphasised that hotels in India are divided into five segments: luxury and higher upmarket, upscale, upper midscale, midscale, and economy. It is anticipated that between Fiscal 2023 and Fiscal 2027, the overall demand CAGR for hotels in India would reach 11.6%.
In terms of revenue and supply share in 2022, the luxury and higher upscale sectors accounted for 35% of supply share and 55% of revenue share. According to Horwath Report, between 1 October 2023 and 31 March 2027, an additional 60,000 rooms are anticipated, with almost 25% of the new supply falling into the premium higher upmarket category.
Juniper Hotels Competitive Strengths
As per RHP, the company believes that its key competitive strengths are expertise in site selection and identifying opportunities to develop its hotels; unique partnership between asset owner and operator brand backed by strong parentage; robust asset management capabilities with a focus on enhancing operating efficiency and profitability; increasing returns by having multiple revenue streams and complementary offerings; well positioned to benefit from industry trends; and experienced and qualified board and management team.
Juniper Hotels Group Companies
Juniper Hotels Limited’s group companies are Asian Hotels (East) Limited, Central Linen Park Private Limited, HGP (Travel) Limited, Hyatt Chain Services Limited, Hyatt Global Services, Inc, Hyatt Hotels Corporation, Hyatt India Consultancy Private Limited, Hyatt International Corporation, Hyatt International (Europe Africa MiddleEast) LLC, Hyatt International South West Asia Limited, Hyatt Services India Private Limited, Information Services Limited, International Reservations Limited, Reservations Center, LLC, Robust Hotels Limited, and Taragaon Regency Hotels Limited.
Juniper Hotels Material Subsidiaries
The company’s material subsidiaries are Chartered Hotels Private Limited and Chartered Hampi Hotels Private Limited.
Juniper Hotels IPO key risks
Some of the key risks –
- Juniper Hotels is exposed to risks associated with the ownership and development of its hotel properties. Delays in the construction of new hotels or improvements or refurbishment of our properties may have an adverse effect on its business, results of operations, cash flows and financial condition.
- A significant portion of our revenue from operations (85.59% in Fiscal 2023) is derived from three of our hotels/serviced apartments in Mumbai (Maharashtra) and New Delhi and any adverse developments affecting these hotels/serviced apartments or the regions in which they operate, could have an adverse effect on Juniper Hotels business, results of operation, cash flows and financial condition.
Juniper Hotels IPO Financials
The company’s revenue from operations for the fiscal year 2023 was ₹666.85 crore, up 116.03% from ₹308.69 crore in the previous fiscal year. From ₹188.03 crore in fiscal year 2022 to ₹1.5 crore in fiscal year 2023, the restated loss for the year decreased.
The company’s revenue from operations for the six months that concluded on September 30, 2023, was ₹336.11 crore.
Lock-in of equity shares allotted to anchor investors
A 90-day lock-in period applies to 50% of the equity shares allotted to anchor investors in the anchor investor portion, and a 30-day lock-in period applies to the remaining 50% of equity shares allotted to anchor investors in the anchor investor portion.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
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Published: 23 Feb 2024, 12:30 PM IST
