Juniper Hotels Ltd is launching its Initial Public Offering (IPO) tomorrow, on Wednesday, February 21. This company specializes in building and owning luxury hotels across India, including Mumbai, Delhi, Ahmedabad, Lucknow, Raipur, and Hampi.
Partnership with Hyatt Hotels
Juniper Hotels has a special partnership with Hyatt Hotels Corporation, a renowned hospitality brand. This partnership spans over 40 years and brings together Hyatt’s expertise with the development prowess of Saraf Hotels, known as the “Saraf Group.” Juniper Hotels is the only hotel development firm in India where Hyatt has a strategic stake.
Company Details
According to the Red Herring Prospectus (RHP), as of September 30, 2023, Juniper Hotels operated 1,836 keys across seven hotels and serviced apartments. The company has a strong foothold in the Indian market, owning 19.6% of the rooms and apartments associated with the Hyatt brand in India.
Saraf Hotels Limited, Two Seas Holdings Limited, Juniper Investments Limited, and Arun Kumar Saraf are the promoters of Juniper Hotels. They collectively own 100% of the company’s equity shares.
In terms of financial performance, Juniper Hotels saw a remarkable 99.2% increase in profit after tax (PAT) and a significant 1086.6% rise in revenue between March 31, 2022, and March 31, 2023.
Key Details of Juniper Hotels IPO
- IPO Dates: The IPO opens for subscription on Wednesday, February 21, and closes on Friday, February 23.
- Price Band: The price band for Juniper IPO is set between ₹342 to ₹360 per equity share of face value of ₹10.
- Lot Size: The minimum lot size for Juniper IPO is 40 equity shares, with multiples of 40 thereafter.
- Anchor Investors: Allocation to anchor investors is scheduled for today, Tuesday, February 20.
- IPO Details: The IPO is worth ₹1,800 crore and comprises solely a fresh issue, without any offer-for-sale component.
Juniper Hotels plans to use the money raised from the IPO for different purposes
- General corporate needs.
- Paying back some of the loans they’ve taken.
- Dealing with recent purchases they’ve made, like Chartered Hotels Private Limited and Chartered Hampi Hotels Private Limited.
Listing Date and Allotment Details
The basis for allotting shares in the Juniper Hotels IPO will likely be decided on Monday, February 26. Refunds for those who didn’t get shares will start on Tuesday, February 27, and shares will be added to investors’ demat accounts on the same day. The shares are expected to be listed on both the BSE and NSE on Wednesday, February 28. The companies managing the IPO are JM Financial Limited, CLSA India Private Limited, and ICICI Securities Limited, while Kfin Technologies Limited is the registrar.
Reservation in the IPO
In the IPO, 75% of shares are set aside for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 10% for Retail Investors.
Grey Market Premium (GMP)
The current grey market premium (GMP) for Juniper Hotels IPO is +8, which means people are willing to pay ₹8 more than the IPO price. Considering this and the upper end of the IPO price band, the estimated listing price for Juniper Hotels shares is around ₹368, which is 22.2% higher than the IPO price of ₹360. Grey market premium reflects investors’ willingness to pay more than the official IPO price.