Yatra Online Makes Market Debut With 10% Discount; Sould You Sell, Hold Or Buy?

Yatra Online IPO Listing: Yatra Online Ltd, whose IPO was open for public subscription between September 15 and September 20, on Thursday made a market debut at a discount of over 10 per cent. The shares of the travel company listed at Rs 127.5 apiece on the NSE, the negative listing as compared with the issue price of Rs 142.

Shivani Nyati, head (wealth) at Swastika Investmart Ltd, said, “Yatra Online Limited (YOL) made its debut on the stock markets today at Rs 127.5 per share, a discount of more than 10 per cent from its IPO price of Rs 142.The YOL’s shares witnessed a negative listing. This is likely due to the company’s high P/E valuation, its reliance on the airline ticketing business, and the competitive nature of the travel industry. Overall, YOL is a risky investment, and investors who receive an allotment of this IPO should consider exiting their position.”

Till the final day of bidding on September 20, the Rs 775-crore IPO was subscribed just 68 per cent, receiving bids for bids for 2,09,06,655 shares as against 3,09,42,356 shares on offer.

The category for retail individual investors (RIIs) was subscribed 1.16 per cent. However, the non-institutional investors category received bids for just 7 per cent of the quota, and the qualified institutional buyers (QIBs) portion was subscribed 82 per cent.

The company’s GMP or grey market premium also remained zero, indicating a flat listing.

Yatra Online mobilised Rs 348.75 crore from anchor investors ahead of the IPO.

The initial public offer had a fresh issue of up to Rs 602 crore and an offer for sale of up to 1,21,83,099 equity shares. The price range for the offer was fixed at Rs 135-142 a share.

The proceeds from the fresh issue worth up to Rs 150 crore will be utilised towards strategic investments, acquisitions and inorganic growth and up to Rs 392 crore towards investment in customer acquisition and retention, technology, and other organic growth initiatives.

Yatra Online Ltd is a corporate travel services provider in terms of the number of corporate clients and the third largest online travel company in the country among key online travel players in terms of gross booking revenue and operating revenue. The shares of the company will be listed on the BSE and the NSE.

SBI Capital Markets, DAM Capital Advisors and IIFL Securities are the managers of the offer.