Juniper Hotels Limited IPO -IPO DETAILS
| IPO Date | Feb 21, 2024, to Feb 23, 2024 |
| Price Band | 342 to ₹360 per share |
| Lot Size | 40 Shares |
| Issue Size | ₹1,800.00 Cr. |
| Allotment Date | 26 February 2024 |
| Listing Date | 28 February 2024 |
Company Overview
Juniper Hotels is a leading owner and developer of luxury hotels, boasting the largest portfolio of Hyatt-affiliated hotels in India. With a total of 7 hotels and serviced apartments, the company offers over 1836 keys across prominent cities such as Mumbai, Delhi, Ahmedabad, Lucknow, Raipur, and Hampi. Jointly owned by Saraf Hotels and Two Seas Holding Holdings, an indirect subsidiary of the Hyatt Group, Juniper Hotels is renowned for its premium offerings. Among its distinguished properties, Juniper Hotels features two luxury establishments: the Grand Hyatt Mumbai Hotel and Andaz Delhi. Additionally, it operates four upper upscale hotels, including Hyatt Delhi Residences, Hyatt Regency Ahmedabad, Hyatt Regency Lucknow, and Hyatt Raipur. Furthermore, the company oversees an upscale hotel known as Hyatt Place Hampi.
The company’s hotel footprint spans approximately 1.43 lakh square feet in commercial areas and 1.05 lakh square feet in the MICE (Meetings, Incentives, Conferences, and Exhibitions) area. MICE, delineated as a distinct category within the hospitality segment, serves to differentiate it from other forms of tourism, emphasizing its focus on business gatherings and events.
Objective of the IPO
Here are a few quick reasons why company is going public:
1. The Company plans to utilize ₹1500 Cr worth of the Net Proceeds to repay the loan acquired during the recent acquisition of CHPL and CHHPL.
2. Allocation of funds for general corporate purposes.
Company Financials
| Period Ended | Total Assets | Total Revenue | Profit After Tax | Net Worth | Reserves & Surplus | Borrowings |
| 31-Mar-21 | 3,055.54 | 192.85 | -199.49 | 543.0 | 400.20 | 1,830.48 |
| 31-Mar-22 | 3,069.76 | 343.76 | -188.03 | 356.37 | 212.67 | 2,121.81 |
| 31-Mar-23 | 3,020.27 | 717.29 | -1.50 | 354.51 | 210.81 | 2,045.61 |
Pros
- The Company has established a strong presence in India’s key markets and strategically positioned its luxury properties in prime locations across the country.
- Juniper has effectively increased its revenues and margins while maintaining a high level of customer satisfaction.
- Juniper offers both luxury hotels and serviced apartments, catering to different market segments. During the pandemic, while demand for hotels decreased by 65%, demand for serviced apartments remained strong
- With India’s young and growing population and increasing per capita GDP, Juniper and other hoteliers are poised to benefit from these favorable market conditions.
Cons
- Neither the Company nor its subsidiaries have achieved profitability, primarily due to the substantial debt burden which adversely impacts profitability.
- A subsidiary of the Company faced challenges in repaying loans during the pandemic, resulting in delays beyond the due date. However, the Company has devised a loan restructuring proposal which has been accepted by the consortium of lenders.
- The Company’s revenue is heavily concentrated, with two luxury properties, Grand Hyatt Mumbai and Andaz Delhi, contributing nearly 90% of its total revenue. This indicates a significant reliance on these prime properties, posing a potential risk to the Company’s revenue stability.
How to Apply for this IPO
1. Go to https://ipo.adityatrading.in/
2. Enter your Client ID
3. Enter the OTP received in your registered mobile number.
4. Choose the IPO and click on apply button.
5. Enter the UPI ID, Quantity, and Cut off the price.
6. Click on submit button
7. Confirm the mandate request received on your phone by entering the UPI Pin.
You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”
