Hyatt brand owner Juniper Hotels gets SEBI nod for Rs 1,800 crore IPO

Juniper Hotels Ltd, which runs hotels under the “Hyatt” brand, has received final observation from the Securities and Exchange Board of India (SEBI) to raise Rs 1800 crore through an initial public offering (IPO).

Juniper Hotels Ltd, which runs hotels under the “Hyatt” brand, has received final observation from the Securities and Exchange Board of India (SEBI) to raise Rs 1800 crore through an initial public offering (IPO). The company had filed its Draft Red Herring Prospectus (DRHP) with Sebi on September 28, 2023.

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The IPO is entirely through a fresh issue of equity shares with no Offer for Sale (OFS) component. The company, in consultation with the lead bankers to the issue, may consider a further issue of equity shares on a private placement for cash consideration aggregating up to Rs 350 crore (“Pre-IPO Placement”).

The company proposes to use the net proceeds of Rs 1,500 crore towards repayment, prepayment, or redemption, in full or in part, of certain outstanding borrowings (including payment of the interest accrued thereon) availed by the company and its subsidiaries and for general corporate purposes.

Juniper Hotels is co-owned by Saraf Hotels Limited and Two Seas Holdings Limited, an affiliate of the prominent global hospitality entity, Hyatt Hotels Corporation. It functions as a luxury hotel development and ownership enterprise, and owns 20% of the total 1836 “Hyatt” affiliated hotel keys in India as of June 30, 2023, as outlined in the Horwath Report cited in the DRHP. The company manages a diverse portfolio consisting of seven hotels and serviced apartments.