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Juniper Hotels IPO Details: Date, Share Price, Size, GMP & Review

Juniper-Hotels-IPO-Details-Date-Share-Price-Size-GMP-&-Review

Juniper Hotels – About the Company

Juniper Hotels is jointly held by Saraf Hotels, Juniper Investments, and Hyatt Hotels Corporation through its indirect subsidiary Two Seas Holdings, which owns 50% of the pre-issue equity share capital. Founded by Arun Kumar Saraf, chairman and managing director, and managed by CEO Varun Saraf, the company has vast expertise spotting possibilities in hospitality destinations, establishing high-end hotels in places, and nurturing them via active asset management. Juniper is the only hotel development firm in India where Hyatt has made a strategic investment. Saraf Group and Hyatt have a four-decade-long association that began with the opening of the first Hyatt Hotel in New Delhi in 1982.

The company has created 12 hotels in India and Nepal, including those owned by Juniper. Juniper has seven hotels and service apartments in its portfolio as of June 30, with a total of 1,836 keys under management.  According to a Horwath Report, the business holds 20% of the Hyatt group's associated hotel rooms in India as of June 30, 2023. The firm has a number of luxury, upper-upscale, and upmarket properties, and it intends to add more luxury and upscale hotels and service apartments to its portfolio through asset transfers from Saraf Hotels or new possibilities. According to the DRHP, it has one of the greatest EBITDA margins among hotel owner businesses for fiscal year 2023.

Juniper Hotels Limited IPO Objectives

Purpose of raising this Rs 1800 crore is as under- approximately Rs 1500 crore will be used to pay back, in total or in fraction, of the borrowings raised by Company  along with recent acquisitions, namely CHPL and CHHPL. Rest amount will be used for other outstanding expenses as well for regular activities. As per its DRHP filed , Juniper Hotels and Its associated companies have short term liability or debt of Rs. 2,252 crore. The Company expects to use an aggregate sum of Rs 1,500 crore from the Net Proceeds to repay, prepay, or redeem all or a part of certain outstanding borrowings made by the Company and its recent acquisitions. This return, prepayment, or redemption is thought to assist reduce outstanding debts on a consolidated basis and debt servicing expenses, allowing the usage of internal accruals for additional investment in business development and expansion.

Juniper Hotels Limited IPO Details:

IPO Open Date 21-Feb-24
IPO Close Date 23-Feb-24
Basis of Allotment 26-Feb-24
Listing Date 28-Feb-24
Face Value Rs 10 per share
Price Rs. 342 to Rs. 360 per share
Lot Size 40 Shares
Total Issue Size 50,000,000 shares
(aggregating up to Rs. 1,800.00 Cr)
Fresh Issue 50,000,000 shares
(aggregating up to Rs. 1,800.00 Cr)
Offer For Sale NIL
Issue Type Book Built Issue IPO
Listing At BSE & NSE
QIB Shares Offered Not less than 75% of the Net Issue
Retail Shares Offered Not more than 10% of the Net Issue
NII (HNI) Shares Offered Not more than 15% of the Net Issue

 

Juniper Hotels Limited IPO Issue Price & Size

Juniper Hotels Limited, fixes its price range between Rs 342 - 360 per share. Total issue size isRs 1800 crore.  Moreover Rs. 1800 crore issue is a fresh issue, and there is nothing in the offer for sale category. This means that the promoter will not receive any compensation from the issue, and the business would use the entire cash as stated in the RHP.

Juniper Hotels Limited IPO commence Date

IPO of Juniper Hotels Limited  starts from February 21, 2024 to February 23, 2024.  So investors will start their bidding process between February 21 to February 23, 2024. February 28th, 2024, will be the possible listing date while the allocation or allotment  is planned for February 26th, 2024.

Juniper Hotels Limited IPO Financial Statements:

Summary of maturity profile of the Group's financial liabilities based on contractual undiscounted payment as of September 30, 2023: (in Million)
Particulars Less than 1 Year 1-5 Year After 5 Year Total
Borrowings * 16287 6273.65 3616.29 36177
Lease liabilities 168.32 828.08 24729.9 25727.3
Trade payables 1171.45 - - 1171.45
Other financial liabilities 559.96 742.55 - 1302.51

 

FY 2021 FY 2022 FY 2023
EPS -13.88 -13.08 -0.1
PE ratio
RONW (%) -36.68 -52.76 -0.42
NAV 37.85 24.8 24.67
ROCE (%) -5.23 -3.3
EBITDA (%) 11.51 29.52 44.94
Debt/Equity 1.72 1.93 0.86

 

KPI Units FY 2021 FY 2022 FY 2023 H1 FY 2024
Inventory/ Keys Number 1,406 1,406 1,406 1,836
Number of hotels and serviced apartments Number 4 4 4 7
Average room rate INR 5,656.77 6,221.98 9,875.12 10,139.85
Average occupancy % 34.23 53.76 75.74 74.84

 

Juniper Hotels Limited IPO Financial Performance:

The Group had a net current obligation of Rs. 1,627.74 crore and recorded a loss of Rs. 26 crore in the six months ended September 30, 2023. The Group holds long-term borrowings of Rs. 1,377 crore, which are due to be repaid in April-May 2024.
The company's operating revenue was Rs.666.85 crore in FY23, up from Rs.308.69 crore in FY22, representing a 116.03% growth year on year. In terms of the bottom line, the firm lost Rs.1.5 crore in FY23, compared to a loss of Rs.188.03 crore the previous year. Their debt-to-equity ratio dropped considerably in the preceding fiscal year.

Juniper Hotels Limited IPO Promoters & Shareholding of the Company

Below mentioned table provides details of shareholders who own 1% or more of the Company's paid-up share capital as of the date of the RHP.

Shareholder Name No. of Shares % of the pre-issue Equity
Share Capital
Saraf Hotels Limited 7,70,79,381 44.68
Two Seas Holdings Limited 8,62,51,192 50
Juniper Investments Limited 91,71,811 5.32

 

Why Invest in Juniper Hotels Limited IPO?

The Covid caused the hotel sector to shut down, but when the Covid impact faded and individuals left their houses to free up their pockets, the business began to pick up. Juniper Hotels' business under the brand Hyatt has expanded significantly, and the government's desire to make India a tourism center has been beneficial. As the India success story fades and family incomes fall, the predicted increase is expected to create increasing demand for upper-tier hotels throughout India.

Also Read: What to Check Before Buying IPO: Things to Know & Is it Safe

If investing in any company, whether it is already listed or launched its IPO you have to analyse the various factors that can affect the growth and revenue or income of the company or such banks. As there is no historical share price data of the bank is not available hence, technical analysis is not possible, but you can use the fundamental analysis to analyse the fundamentals of the bank that will help you know its strengths and risk factors that can affect it's business and revenue. In respect of the same, we brought here the competitive strength and risk factors associated with the Juniper Hotels Limited.

Competitive Strengths:

Expertise in site selection and recognizing chances for hotel development.

The company has a strong presence in key cities and has developed hotels in areas with high entry barriers, such as the Grand Hyatt Mumbai Hotel and Residences and Andaz Delhi, emerging business destinations such as Ahmedabad, Lucknow, and Raipur, and growing tourist destinations such as Hampi.

They select micro-markets and locales based on their proximity to airports, core business districts, industrial catchment regions, and popular tourist destinations. The Hyatt sub-brand is integrated throughout each development, appealing to high-end travelers while maximising long-term revenues.

Unique collaboration between asset owner and operator brand, supported by solid parentage.

The Saraf Group and Hyatt have a 40-year association that began with the launch of the first Hyatt hotel in India, the Hyatt Regency, Delhi, in 1982. The Saraf Group is a pioneer in hotel construction in India, having built 12 hotels and serviced flats in nine cities and owning 11 in strategic locations throughout India and Nepal.

They also benefit from their partnership with Hyatt by introducing other Hyatt subbrands to India. HHC, a worldwide hospitality firm with over 25 brands, trades on the New York Stock Exchange. As of September 30, 2023, HHC has approximately 25 brands, eight of which were available in India. The Saraf Group has signed trademark license agreements for five Hyatt brands: "Hyatt", "Grand Hyatt", "Hyatt Regency", "Hyatt Place", and "Andaz".

Increasing profits through diverse income streams and complementing offers.

To ensure that existing resources are fully utilized, the firm has implemented supplementary revenue-generating streams within its hotels, such as serviced apartments, restaurants, MICE services, and other services. During the COVID-19 epidemic, average occupancy at the Grand Hyatt Mumbai Hotel and Residences fell by 64.70% in Fiscal 2021, although serviced apartments at the Grand Hyatt Mumbai Hotel and Residences and Hyatt Delhi Residences remained high. This combination results in a mix of clients and visitors staying at the hotels, which boosts ARRs.

Well-positioned to gain from industry developments.

India's GDP is expected to increase at an 8.3% CAGR from Fiscal 2023 to Fiscal 2028, making it the world's fifth biggest economy in Fiscal 2022. The Indian hotel business is also predicted to profit from rising population and affluence. The average yearly household discretionary income is expected to rise to over Rs. 2 million in 2020-2021 pricing. India's population is predicted to reach 1.66 billion by 2047, with the affluent and middle classes comprising around 28% and 61%, respectively. This increase would generate significant demand for upper-tier hotels in India.

Hotels and serviced flats are well-positioned to capitalize on this growth opportunity since they are located in established and rising cities, as well as chosen markets that will account for about 38% of total passenger traffic in India in Fiscal 2023. Domestic travel trips grew about tenfold between 2001 and 2019, with a CAGR of 13.5%, owing to a big middle class population, a youthful working population, and rising individual earnings, which drove more discretionary travel.

Fiscal 2023 to Fiscal 2027 Supply CAGR Demand CAGR
All india 8.70% 11.60%
Mumbai 7.50% 10.70%
Delhi NCR 4.70% 10%
Ahmadabad 3.80% 8.50%

 

Juniper Strategy

Enhancement of facilities at our current assets

Grand Hyatt Mumbai Hotel & Residences

Phase I includes the construction of a new ballroom and the addition of approximately 198,000 square feet of hospitality inventory. Phase II involves the construction of further levels, which will result in the addition of 293 rooms and 24 serviced flats.

Two stories have been added to the Hyatt Regency Ahmedabad.

Premiumization includes Grand Hyatt Mumbai Hotel and Residences, Andaz Delhi, Hyatt Regency Ahmedabad, Hyatt Raipur, and Hyatt Place Hampi.

Creation of new prospects for our current assets.

Development of commercial space with a development potential of about 54,000 sq. ft (builtup): on property next to the Grand Hyatt Mumbai Hotel and Residences

Mixed-use area on property, close to the Grand Hyatt Mumbai Hotel and Residences, with a development potential of about 96,583 square feet.

Land Parcels are available in Guwahati and Thiruvananthapuram for development into acceptable land use.

Risk Factors

The Company and some of its subsidiaries have previously sustained losses and experienced negative operational cash flows, and it is likely that they may again.

The corporation has huge debt, which requires big cash flows to service.

CHPL, a recently acquired firm, has previously experienced loan repayment delays and has thus embarked on strategic debt restructuring. Any inability of CHPL to achieve the restructuring requirements might have a negative impact on the company's business, financial position, cash flows, and operating performance.

Revenue from operations (90.48% in the six months ended September 30, 2023) is derived from three hotels/serviced apartments in Mumbai (Maharashtra) and New Delhi, out of a portfolio of four hotels/serviced apartments. All their hotels and serviced apartments are currently operating under the Hyatt brand. If the agreements related to the use of the brand name are terminated or not renewed, the business, results of operations, and cash flow will be affected.

Juniper Hotels Limited IPO Grey Market Premium (GMP)

Grey Market Premium or GMP is that unofficial mechanism you can use to know the premium or discount price an investor is ready to pay in the grey market. Hence, GMP is determined in the grey market as per the demand-supply of the shares in the grey market.

Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable

GMP is not a reliable factor as it keeps fluctuating as per the demand and supply in the grey market. A share price and stock market in India or in any country is affected by many factors. You should consider the intrinsic value or compare the valuation of the company with other listed peers. However, you can use the GMP, as a speculative price, at which the stock price might be listed on the stock exchange.

Also Read: What are the Top Factors Affecting the Stock Market in India

The grey market premium could not be discover but will surely be updates as shares start to trade in grey market.

How to Apply for Juniper Hotels Limited IPO?

Juniper Hotels Limited IPO you can use your existing trading account and demat account with your broker or you can apply to open the new one at Moneysukh. Here you will get the most advanced online trading platforms with the best demat account with the lowest brokerage charges in India to trade or invest in equity marketcommodity market or forex market at lowest broking charges.

Also Read: Benefits of Minor Demat account: Empowering the next Generation of investors

Having a trading account and demat account for trading and investing you will get the advantages of the best online trading app with options to choose from various trading algorithms software such as Trade Radar,TradeTronKeevAlgoBullsQuantman, and FoxTrader. You can also use the Algo-trading mechanism with the best algo-trading platform and trading strategies at Moneysukh with options to choose from the most popular & profitable algo-trading strategies or trade the best intraday algo-trading strategy at the lowest pricing. Right now, to apply for the Juniper Hotels Limited IPO follow the steps given below.

Steps to Apply for Juniper Hotels Limited IPO:

Step 1: To apply for Juniper Hotels Limited IPO you can use your PC or smartphone.

Step 2: Go to the browser and type trade.moneysukh.com and log in with your User ID & password.

Step 3: Now explore the IPO section and click on the Juniper Hotels Limited IPO.

Step 4: Here you have to fill in the required details like price, quantity, and so on.

Note: When you apply in the IPO bid at the cutoff price and then submit your application. 

Step 5: Now make the desired payment and then submit your IPO application successfully.

Also Read: How to Convert Physical Shares Into Demat: Stepwise Procedure

How to Check Juniper Hotels Limited IPO Allotment Status?

The basis of the allotment date for Juniper Hotels Limited IPO is 12 Feb 2024, hence you can check the Juniper Hotels Limited IPO allotment status from this date onwards. If you don’t get the allotment of any share your money will be refunded into your bank account after 13 Feb 2024 or the fund will be unblocked if you have applied through the ASBA. However, to check the Juniper Hotels Limited IPO allotment status you can use various online sources including the Moneysukh.

Also Read: How to check IPO allotment status on NSE, BSE through Moneysukh

If the IPO is oversubscribed, then your chances of getting the allotment of shares are very low, especially if you have applied through the retail category or HNI category. Despite in oversubscription of the IPO if you manage to get the allotment of any share, then the allocated shares will be transferred into your demat account on 13 Feb 2024 or on the listing day i.e. 14 Feb 2024. However, if you follow tips and tricks while applying for IPOs you can increase your chances of getting the allotment.

Also Read: How to improve Allotment chances: 15 Tips for investing in IPO

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