Juniper Hotels IPO opens today: GMP, issue details, review, more. Should you subscribe or not?

Also Read: Juniper Hotels IPO opens tomorrow: GMP, issue details, 10 key things to know before subscribing to ₹1,800-crore issue

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 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. Juniper Hotels IPO raised ₹810 crores from anchor investors on Monday, February 20. The company notified the bourses that it allocated 2,25,00,000 equity shares at ₹360 per share to anchor investors.

Also Read: Juniper Hotels Limited raises ₹810 crore from anchor investors ahead of IPO

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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.

Between March 31, 2022, and March 31, 2023, Juniper Hotels Limited’s profit after tax (PAT) climbed by 99.2% and its revenue increased by 1086.6%, respectively.

Juniper Hotels IPO details

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.

The registrar for the Juniper Hotels IPO is Kfin Technologies Limited, while the book running lead managers are JM Financial Limited, CLSA India Private Limited, and ICICI Securities Limited.

Also Read: Juniper Hotels IPO: Price band set at ₹342-360 per share; check GMP, key dates, issue details, more

Juniper Hotels IPO GMP today

Juniper IPO GMP or grey market premium is +8. This indicates Juniper Hotels share price were trading at a premium of ₹8 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Juniper Hotels share price was indicated at ₹368 apiece, which is 22.2% higher than the IPO price of ₹360.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

Also Read: Juniper Hotels IPO opens next week. GMP, price, other details of upcoming IPO

Juniper Hotels IPO Review

Hensex Securities Pvt Ltd

“Company is a unique partnership between asset owner and operator brand backed by strong parentage, Expertise in site selection and identifying opportunities to develop their hotels, Well positioned to benefit from industry trends, Robust asset management capabilities with a Focus on enhancing operating efficiency and profitability. ‘WE STAY NEUTRAL TO THE ISSUE’,” the brokerage said.

Dilip Davda

Even if PAT levels have shown an adverse trend in the financial performance thus far, Dilip claims that the hospitality firm is the biggest gross profit earner and has a worldwide partner and well-known global brand in the shape of “Hyatt.”

“As the issue is at a negative P/E due to its loss making status at the net level, it is meant for well-informed investors to park funds for handsome rewards in medium to long term,” said Dilip Davda, the contributing editor at Chittorgarh.

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: 21 Feb 2024, 07:44 AM IST