Yatra Online IPO(initial public offering) has witnessed a subscription of 1.6 times on its final day of bidding, signaling encouraging interest from investors. The public offering, aimed at raising Rs 775 crore, saw bids for 4.96 crore equity shares against the offer size of 3.09 crore shares, as per subscription data available.
Retail investors have notably shown robust support, buying 2.07 times the allotted quota, accounting for 10 percent of the total offer size. Qualified institutional buyers (QIBs) and high net-worth individuals also displayed interest, with subscriptions at 2.05 times and 42 percent, respectively.
Despite the aggressive pricing, Yatra Online’s valuation at 288.2x FY23 P/E and 5.9x FY23 P/S remains a point of discussion. Indsec Research noted the aggressive pricing but expressed confidence in the company’s long-term potential, recommending a ‘subscribe’ rating.
Stoxbox predicts rapid growth in the online travel market share (OTA), foreseeing improved profitability for Yatra Online. The company’s positive financials in FY23 and a history of strong revenue growth bolster this perspective, leading to a ‘subscribe’ recommendation.
The IPO is structured with fresh shares worth Rs 602 crore and an offer-for-sale (OFS) of shares worth Rs 173 crore by selling shareholders, reflecting the company’s strategic approach to funding its expansion. Trading in Yatra Online’s equity shares is set to commence on September 29, showcasing the company’s progress in the market.
Investors await the finalization of the basis of allotment of IPO shares, scheduled by September 25, with credits to demat accounts and refunds or unblocking of ASBA accounts to take place by September 27 and 26, respectively.
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