Yatra Online LTD. IPO - Review, Valuation, Date & GMP

Yatra Online Limited - Complete Overview

Established in 2005, Yatra Online Limited stands as India's largest provider of corporate travel services, boasting the highest number of corporate clients and ranking as the third-largest online travel company in India based on gross booking revenue and operating revenue for the Fiscal Year 2023.

The company caters to both B2B and B2C customers, serving as the foremost corporate travel service provider in India, with a clientele of 813 major corporate customers and over 49,800 registered SME customers. Additionally, it holds the third position among consumer online travel companies (OTCs) in the country when considering gross booking revenue for Fiscal 2023.

Yatra Online Limited has also established the largest network of hotel and accommodation partnerships, boasting over 2,105,600 tie-ups with various accommodations as of March 31, 2023.

The company's comprehensive range of services includes domestic and international air ticketing for nearly all Indian and international airlines, bus ticketing, rail ticketing, cab bookings, and various ancillary services within India. 

Furthermore, it grants access to a vast selection of hotels, homestays, and other accommodations, with a portfolio encompassing about 105,600 hotels across 1,490 cities and towns in India by Fiscal 2023, along with access to more than two million hotels globally. This expansive hotel inventory is the largest among major Indian OTA players.

In addition to these services, customers can also access holiday packages and other activities such as visa facilitation, tours, sightseeing, shows, and events through the Yatra platform.

Moreover, Yatra Online Limited has recently ventured into the freight forwarding business with the introduction of Yatra Freight, a strategic move aimed at expanding its corporate service offerings.

 

 

What does the company do? 

Yatra Online Limited operates as a travel company that offers domestic and international customers access to information, pricing, availability, and booking services for their travel needs.

 

IPO Overview

The Yatra Online Limited IPO date is scheduled from September 15, 2023, to September 20, 2023, and is expected to be listed on both the NSE and BSE exchanges. This upcoming IPO falls under the category of a Book Built Issue IPO.

Regarding pricing, the IPO price is set between the range of Rs. 135 to Rs. 142 per share, with a face value of Rs. 1 per share. The allocation structure designates 75% of shares for institutional investors, 15% for non-institutional investors, and 10% for retail investors.

 

Yatra Online Limited IPO timetable (Tentative)

EVENTS	DATE
IPO Opening Date	15 September 2023
IPO Closing Date	20 September 2023
IPO Allotment Date	25 September 2023
Refund initiation	26 September 2023
IPO Listing Date	29 September 2023

 

Yatra Online Limited IPO Details

IPO Opening & Closing Date	15 September to 20 September 2023
Face Value	Rs.1 Per Share
Issue Price	Rs.135 to Rs.142 per share
Lot Size	105 Shares
Price of 1 Lot	Rs. 14,910
Issue Size	Coming Soon
Offer for Sale	12,183,099 shares of Rs. 1 (aggregating up to Rs. [.] Cr)
Fresh Issue	[.] Shares (aggregating up to Rs. 602.00 Cr)
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Pvt. Ltd.

 

Yatra Online Limited IPO Lot Details

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lot
Minimum Lot Investment (HNI)	14 Lot
Maximum Lot Investment (HNI)	67 Lot

 

Yatra Online Limited IPO Reservation

Institutional share Portion	75%
Non-institutional share Portion	15%
Retail share Portion	10%

 

Company Financial

Amount in Crores

Period	FY - 21	FY - 22	FY - 23
Total Assets	562.91	547.78	681.25
Total Revenue	143.62	218.81	397.47
PAT	-118.86	-30.79	7.63
Net Worth	123.49	100.93	169.52
Total Borrowings	13.11	35.86	153.07

 

Objective of the Issue 

The company aims to achieve the following objectives:

• Strategic investments, acquisitions, and fostering inorganic growth.
• Investment in endeavours related to customer acquisition and retention, technology enhancements, and other organic growth initiatives.
• Addressing general corporate needs.

 

Promoters and Management of Yatra Online Limited

The Promoters of the Company are THCL and ACDPL.

Pre-issue Promoter shareholding	98.59%
Post-issue Promoter shareholding

 

Peer Comparison 

The following are the listed peers of the company:

Company Name	Total revenue (Rs. in million)	P/E	EPS (Diluted) (Rs.)
Yatra Online Limited	3,974.65	-	0.69
Easy Trip Planners Limited	4,641.98	56.53	0.77

 

IPO's Valuations

The Yatra Online Limited IPO price is set between the range of Rs. 135 to Rs. 142 per share, with the company's EPS reported at Rs. 0.69. While the company's DRHP does not provide the P/E ratio, based on the upper limit of the issue price for valuation, the company's P/E ratio is approximately 205.

 

Dividend Policy

The company has not declared any dividends in the past, and future dividend payments will be contingent upon the company's financial performance.

 

IPO's Strengths 

• A reputable brand with a demonstrated history of success and a focused marketing strategy.
• A substantial and devoted customer base.
• The effective multi-channel approach caters to both business and leisure travellers.
• The B2B channel encompasses corporate travel and travel agent operations.
• A unified technology platform that integrates various functions.
• A wide-ranging array of services and product offerings.
• A seasoned management team with a well-established track record.

 

IPO Weaknesses 

• The Statutory Auditor of the company has included significant matters of emphasis in their report on the audited consolidated financial statements of the Company.
• The company has issued Equity Shares at prices that could be lower than the Offer Price within the last 12 months.
• In the past, the company has faced negative cash flow.
• A substantial portion of the Adjusted Margin, contributing 28.25% of the total in Fiscal 2023, is derived from the B2B business.
• Past financial records of the company show restated losses.
• The company relies heavily on its airline ticketing business, which constitutes a significant portion of its revenue and originates from a limited number of airline suppliers in India.
• The company is exposed to potential legal proceedings or claims stemming from travel-related accidents or misconduct by customers during their travels.
• The termination of the merger with Ebix Inc. and associated legal actions could have a material and adverse impact on the company's financial results.

 

 

IPO GMP Today

Yatra Online Limited IPO GMP is not yet available.

 

Conclusion

Yatra Online Limited holds the position of being India's premier corporate travel provider, boasting an extensive customer base. Nevertheless, the company recorded negative financial performance in the past. Given this financial outlook, the IPO appears to be potentially overvalued. Investors are strongly recommended to consider investing in this IPO only after conducting a thorough and comprehensive analysis.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP

 

 

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