Yatra Online raises Rs 348 crore from anchor investors

The third-largest online travel agency in the nation, Yatra Online, raised Rs 348.75 crore from 33 anchor investors on September 14, the day before its initial public offering (IPO) opens.

Morgan Stanley, Goldman Sachs, Societe Generale, BNP Paribas Arbitrage, Elara India Opportunities Fund, Whiteoak Capital, and Quantum-State Investment Fund were important investors in the anchor book.

Additionally investing in the company through the anchor book were ICICI Prudential Mutual Fund, Mirae Asset, Tata Mutual Fund, Bandhan Mutual Fund, Max Life Insurance Company, Bajaj Allianz Life Insurance Company, and Edelweiss Trusteeship.

In a filing to exchanges, the corporate travel company stated that it has decided to allocate 2,45,59,860 equity shares to anchor investors for Rs 142 per share.

In addition, 1,48,59,390 equity shares from the total allocation to anchor investors were allocated to six domestic mutual funds via a total of 19 schemes.

On September 15, Yatra Online will begin its Rs 775 crore initial public offering, which will include a fresh issue of shares valued at Rs 602 crore and an offer-for-sale (OFS) of 1,21,83,099 equity shares valued at Rs 173 crore by the promoter and an investor, at the upper price band.

The price band for the September 20 closing date of the offer has been set at Rs. 135-142 per share.

The net proceeds from the fresh issuance would be used to pay for strategic investments, acquisitions, and inorganic expansion for Rs 150 crore as well as expenditures in customer acquisition and retention, technology, and other organic development efforts, which are expected to cost a total of Rs 392 crore. The remaining funds will be used by the company for general corporate needs.

Yatra Online is the third-biggest online travel company in India among the major OTA (online travel agency) companies in terms of gross booking revenue and operational revenue for FY23. Yatra Online is the largest corporate travel services provider in India in terms of the number of corporate clients.