Company and IPO Overview:
Yatra is India’s largest corporate travel services provider in terms of number of corporate clients and the third largest online travel company in India among key Online Travel Agency (OTA) players in terms of gross booking revenue and operating revenue. It has the largest number of hotel and accommodation tie-ups amongst key domestic OTA players of over 2,105,600 tie-ups, as on March 31, 2023.
The company provides domestic and international air ticketing on Indian and international airlines, as well as bus ticketing, rail ticketing, cab bookings, and ancillary services within India, hotels, homestays, and other accommodations bookings, with about 105,600 hotels in 1,490 cities and towns in India, as on Fiscal 2023 and more than two million hotels globally through its website yatra.com, mobile applications, corporate SaaS platform, and other associated platforms.
Yatra's clientele include both B2B and B2C customers, this enables the company to target India's most frequent and high-spending travelers, namely, educated urban consumers. The combination of its B2C and B2B channels enable it to target India’s most frequent and high spending travelers, namely, educated urban consumers, in a cost-effective manner. In addition, its travel agent network provides additional scale to the business by leveraging its integrated technology platform in order to aggregate consumer demand from over 29,800 travel agents in above 1,000 cities across India as of March 31, 2023.
Yatra IPO is the next main board IPO which is ready to go public, the company is about to raise around ₹ 775 crores via IPO comprising Fresh Issue of ₹ 602 crores and Offer For Sale upto ₹ 173 crores. The price band of the issue is ₹ 135 to ₹ 142 with a minimum market lot of 105 shares. Yatra Online IPO subscription quota for retail is 10.00%, NII is 15.00% and QIB is 75.00%.
Financials (rounded off):
Date | Total Revenue (₹ in cr) | PAT (₹ in cr) |
31/03/2021 | 144 | (119) |
31/03/2022 | 219 | (31) |
31/03/2023 | 397 | 8 |
Objectives of the Issue:
1. Strategic investments, acquisitions and inorganic growth;
2. Investment in customer acquisition and retention, technology, and other organic growth initiatives.
3. General corporate purposes.
IPO Details:
IPO Date | 15/09/2023-20/09/2023 |
Face Value | ₹1 per share |
IPO Price Band | ₹135-₹142 per share |
IPO Lot Size | 105 Shares |
Listing at | NSE, BSE |
Basis of Allotment | 25/09/2023 |
Credit of Shares in Demat | 27/09/2023 |
Listing Date | 29/09/2023 |
Pre-Issue Shareholding | 98.59% |
Post-Issue Shareholding | - |
Retail Minimum Lot Size | 105 shares (₹14,910) |
Valuations & Margins:
Indicators | FY 21 | FY 22 | FY 23 |
EPS | (11.08) | (2.76) | 0.69 |
P/E | - | - | 205.8 |
Important things to note about the Company:
Top reasons to consider the IPO:
1. Yatra Online Limited is a trusted brand with a proven track record and employs a targeted marketing strategy to effectively reach its customer base.
2. Yatra Online boasts a large and loyal customer base, which provides a strong foundation for continued growth and revenue generation.
3. Yatra employs a synergistic multi-channel go-to-market approach that caters to both business and leisure travelers, enhancing its market reach and diversification.
4. Yatra Online utilizes an integrated technology platform, enabling seamless operations and enhancing customer experience.
5. Yatra offers a comprehensive selection of services and product offerings, providing a one-stop solution for travelers' needs.
Risk Factors to watch out in the IPO:
1. Yatra faces intense competition in the highly competitive Indian travel industry, which may pose challenges for its future competitiveness and profitability.
2. There are various risks associated with Indian businesses, particularly those within the Indian travel industry, including potential bankruptcies, restructurings, consolidations, and alliances among its partners.
3. Yatra is heavily dependent on its airline ticketing business, which generates a significant portion of its revenues and is primarily derived from a limited number of airline suppliers in India.
4. The commission and other fees received by the company from airline suppliers, including its GDS service providers, for the sale of air tickets may be subject to reduction or elimination, impacting its revenue streams.
5. Yatra's success is contingent on its relationships with a broad range of travel suppliers, and any adverse changes in these relationships or its inability to establish new ones could adversely affect its operations and competitiveness.
Crisp Insights:
Yatra IPO GMP Today: NIL
Yatra IPO Review: Although it operates in the rapidly growing travel and tourism sector, the persistent influx of new competitors is expected to continue exerting cost pressures. Considering its FY23 earnings, the valuation of this investment seems excessively high. There is no harm in skipping this pricey bet.
Disclaimer: All information is provided for educational and informational purpose only. Data is fetched from publicly available sources such as the DRHP filed by the company. The website or the author takes no guarantee for the accuracy of the data however, we have tried our best to present accurate data to out readers. Please consult a financial advisor or do your own analysis before investing/trading in the stock market.
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