On the second day of Juniper Hotels' Initial Public Offering (IPO), the retail portion observed a subscription rate of 0.87 times, indicating a relatively high level of investor interest.
Data disclosed by the stock exchanges revealed that the overall subscription for the IPO stood at 0.23 times, with bids received for 66,03,040 shares against the offered 2,89,47,367 equity shares, falling within a price band of Rs 342-360.
While the retail segment showed strong enthusiasm with a subscription rate of 87 percent, the non-institutional investors segment witnessed a subscription rate of only 0.14 times. Similarly, the qualified institutional buyer segment was subscribed 0.06 times.
The IPO subscription commenced on February 21, 2024, and is scheduled to conclude on February 23, 2024. As of the latest update on February 22, 2024, the Grey Market Premium (GMP) for Juniper Hotels IPO stands at Rs 3. With the price band set at Rs 360.00, the estimated listing price for the IPO is projected to be Rs 363, considering the maximum price along with the current GMP. This suggests an expected percentage gain/loss per share of 0.83 percent.
Before the IPO launch, Juniper Hotels Ltd secured Rs 810 crores from anchor investors, including both foreign and domestic institutions such as Fidelity, and Kotak Mahindra MF, among others. The IPO, valued at Rs 1,800.00 crores, comprises an entirely fresh issue of 5 crore shares. The allotment for the IPO is anticipated to be finalized on February 26, 2024, with a tentative listing date set for February 28, 2024.
Investors need to consider a minimum lot size of 40 shares for application, with retail investors requiring a minimum investment of Rs 14,400. In contrast, non-institutional investors (NII) and qualified institutional buyers (QIB) must invest in a minimum of 14 lots (560 shares) and 70 lots (2,800 shares) respectively.
Leading brokerages, including Anand Rathi and SBI Securities, have issued a “Subscribe” rating to the IPO, citing promising investment opportunities within the hospitality sector. Despite varying views on valuation, confidence in Juniper Hotels' distinctive partnership structure, asset management capabilities, and strategic expansion plans remain strong, indicating potential for long-term growth.
Juniper Hotels Limited, promoted by Saraf Hotels Limited and its affiliate, stands as the largest owner of “Hyatt” affiliated hotels in India as of September 30, 2023. With a portfolio comprising seven hotels and serviced apartments, the company operates within the luxury hotel development and ownership domain, offering significant growth prospects.
