Juniper Hotels IPO Subscribed 23% On Day 2

Juniper Hotels Ltd.'s initial public offering has been subscribed 0.23 times so far on Thursday.

It saw tepid interest on its first day, receiving only 11% bids. The IPO to raise up to Rs 1,800 crore closes on Friday.

The maiden offer consists of an entirely fresh issue of five crore shares, and the company set a price band of Rs 342–360 per share for the three-day IPO.

Ahead of its initial public offering, the hospitality firm raised Rs 810 crore from anchor investors. The company allotted 2.25 crore shares at Rs 360 apiece to 43 anchor investors.

The minimum application lot size is 40 shares, requiring a minimum investment of Rs 14,400 for retail investors. Qualified institutional buyers are required to invest a minimum of 14 lots, or 560 shares, while non-institutional investors must invest a minimum of 70 lots, or 2,800 shares.

The shares will list on the BSE and the National Stock Exchange, with a tentative listing date scheduled for Feb. 28.

• Issue opens: Feb. 21

• Issue closes: Feb. 23.

• Face value: Rs 10 per share.

• Price band: Rs 342–360 per share.

• Lot size: 40 shares.

• Fresh issue size: Rs 1,800 crore.

• Total issue size: Rs 1,800 crore.

• Issue type: Book-built issue IPO

• Listing: BSE and NSE.

The net proceeds are proposed to be utilised for repayment or pre-payment, in full or in part, of certain outstanding borrowings availed by the company and its recent acquisitions, as well as general corporate purposes.

Established in September 1985, Juniper specialises in luxury hotel development and ownership. As of Sept. 30, 2023, the company operates seven hotels and serviced apartments, boasting a collective total of 1,836 rooms.

Co-owned by Saraf Hotels Ltd. and Two Seas Holdings Ltd., an affiliate of Hyatt Hotels Corp., Juniper benefits from a strategic partnership uniting a hotel developer with an international hospitality giant.

Juniper operates properties in Mumbai, Delhi, Ahmedabad, Lucknow, Raipur and Hampi in the luxury, upper upscale and upscale segments.

The IPO was subscribed 0.23 times, as of 5 p.m. on Thursday.

• Institutional investors: 0.06 times or 6%

• Non-institutional investors: 0.14 times or 14%.

• Retail investors: 0.87 times or 87%.