Yatra Online IPO Opens Today: Brokerages Give Thumbs-up, Grey Market Sees No Premium


Yatra Online IPO: Investors can apply for the Rs 775-crore public offer till 4.50 pm on September 20; the price band has been fixed at Rs 135-142 per share

Yatra Online IPO Day 1: The primary market is currently busy with back-to-back IPOs. The latest offer hitting the market today is Yatra Online IPO. The initial public offering of travel services provider Yatra Online opened on Friday, September 15. Investors can apply for the Yatra Online IPO till 4.50 pm on September 20. The price band for the Rs 775-crore IPO has been fixed at Rs 135-142 per share.

As of 12 pm on Friday, Yatra Online IPO has been subscribed 3 per cent, receiving bids for 9,34,815 shares as against the total of 3,09,42,356 shares on offer.

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Yatra Online IPO Key Dates, Price

Yatra IPO has opened on Friday (September 15) and closes on Wednesday (September 20). The IPO allotment will take place on September 25. The shares will be listed on BSE and NSE on September 29.

The price band for the IPO has been fixed at Rs 135-142 per share. Investors need to apply for at least a lot comprising 105 shares. The Rs 775-crore IPO comprises both fresh fresh issue of shares worth Rs 602 crore and an offer-for-sale of Rs 173 crore.

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Yatra Online IPO GMP Today

According to market observers, the current grey market premium of Yatra Online is zero. It means the grey market is expecting no listing gain from the public issue. Importantly, GMP of unlisted shares keep changing based on the sentiments in the market.

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

Yatra IPO Investor Quota

Out of the total 5,45,77,464 shares on offer, 45 per cent were earmarked for anchor investors, 30 per cent for qualified institutional buyers, 15 per cent for non-institutional investors, and 10 per cent for retail investors.

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Yatra IPO: Should You Invest?

Giving ‘Subscribe- Long Term’ rating to the IPO, brokerage Anand Rathi in a note said, “We believe that for Yatra, there is a scope of business improvement on the back of industry tailwinds, brand recall and business scalability, resulting in expansion of EBITDA margin from here on.”

It added that at an upper band, the company is valued at P/E of 219x while on market-cap/sales it is valued at 5.8x post issue of equity shares, compare to its peer (Easy trip planners – 15.7x) on FY23 basis.

Another brokerage BP Equities also gave ‘Subscribe’ rating to Yatra Online IPO. In its note, it said, “With the growth in the tourism industry, we expect the online travel market share (OTA) to increase faster than captive players, improving the company’s profitability. With the company posting profits in FY23 and strong revenue growth in the past, we remain positive on the company from a medium to long-term perspective. We, therefore, recommend an SUBSCRIBE rating for the issue.”

It also said that being one of the key players, Yatra Online is well-positioned to capture a significant share of growth in the tourism industry in India, owing to its longstanding relationship with both B2B and B2C customers. This enables the company to target India’s most frequent and high-spending travellers and educated urban consumers.

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