The Securities and Exchange Board of India (SEBI) has given Juniper Hotels Ltd., the company that operates hotels under the “Hyatt” brand, its final approval to raise Rs. 1800 crore through an initial public offering (IPO). On September 28, 2023, the company submitted its Draft Red Herring Prospectus (DRHP) to Sebi.The entire IPO takes place through a new equity share issue; there is no Offer for Sale (OFS) element. The company may think about issuing additional equity shares on a private placement for cash consideration totaling up to Rs 350 crore (“Pre-IPO Placement”), after consulting with the lead bankers on the deal.
The company plans to use the Rs 1,500 crore net proceeds for general corporate purposes as well as the repayment, prepayment, or redemption of some outstanding borrowings that it and its subsidiaries have taken out, in full or in part, including paying the interest that has accrued on those borrowings.After Juniper Hotels submitted its initial IPO paperwork on September 28, 2023, SEBI gave its approval.With a face value of Rs 10, the IPO only consists of a new equity share issue; an offer for sale (OFS) is not included.
Juniper Hotels IPO
The company that manages hotels under the “Hyatt” brand, Juniper Hotels, intends to raise as much as Rs 1,800 crore through an initial public offering (IPO) of all new equity shares without an OFS component. The issue size could be lowered by a potential pre-IPO placement of up to Rs 350 crore.The company plans to use the Rs 1,500 crore net proceeds for general corporate purposes as well as the repayment, prepayment, or redemption of some outstanding borrowings that it and its subsidiaries have taken out, in full or in part, including paying the interest that has accrued on those borrowings.
Saraf Hotels Limited and Two Seas Holdings Limited, a subsidiary of the well-known international hospitality company Hyatt Hotels Corporation, jointly own Juniper Hotels. According to the Horwath Report, which was cited in the DRHP, it operates as a luxury hotel development and ownership enterprise and as of June 30, 2023, owned 20% of all 1836 “Hyatt” affiliated hotel keys in India. The organisation oversees a varied collection of properties that includes seven hotels and serviced apartments.
They have hotels and serviced apartments in six key cities: Mumbai, Delhi, Ahmedabad, Lucknow, Raipur, and Hampi. The hotels and apartments fall into the following categories: luxury, upper upscale, and upscale. Interestingly, the largest hotel in India is the Grand Hyatt Mumbai Hotel and Residences.
Saraf Hotels Limited and Two Seas Holdings Limited, a subsidiary of the well-known international hospitality company Hyatt Hotels Corporation, jointly own Juniper Hotels. According to the Horwath Report, which was cited in the DRHP, it operates as a luxury hotel development and ownership enterprise and as of June 30, 2023, owned 20% of all 1836 “Hyatt” affiliated hotel keys in India. The organisation oversees a varied collection of properties that includes seven hotels and serviced apartments.
Arkade Developers IPO
Arkade Developers, a real estate company based in Mumbai, intends to issue additional shares in order to raise Rs 430 crore through the IPO. The company plans to use the net proceeds to fund the acquisition of upcoming real estate projects, general corporate purposes, and the development of their ongoing and upcoming projects, such as Arkade Nest.
Revenue from operations at Arkade Developers increased at a CAGR of 26.69% between Fiscal 2021 and Fiscal 2023. Revenue for the company was Rs 2,240.13 million in fiscal 2023, Rs 2,371.82 million in fiscal 2022, and Rs 1,131.85 million in fiscal 2021. Their projects have all been, and currently are, located in Maharashtra’s MMR.
1.80 million square feet of residential property had been developed by them as of July 31, 2023 (including through partnership entities in which Arkade holds the majority stake). They are in the business of creating new projects and renovating existing ones. From 2017 to the first quarter of 2023, they introduced 1,040 residential units and sold 792 of them in various MMR, Maharashtra, markets.