Yatra Online faced a disappointing debut on Dalal Street, with its shares being listed at a substantial discount.
Both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) saw the company's shares open at lower prices. Yatra Online's shares made their debut at a 10.2 percent decline from the issue price of Rs 142.
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, commented on the market debut of Yatra Online Limited (YOL), noting that the shares commenced trading at Rs 127.5 per share, representing a discount of over 10 percent compared to its IPO price of Rs 142.
Nyati suggested that the negative listing of YOL's shares could be attributed to various factors, including the company's high price-to-earnings (P/E) valuation, heavy reliance on the airline ticketing business, and the fiercely competitive nature of the travel industry.
"In general, YOL is a risky investment, and investors who have been allotted this IPO should consider exiting their position," she added.
During its initial public offering (IPO) phase, Yatra set aside a significant portion of shares for various investor categories. Specifically, at least 75 percent of the shares were allocated to Qualified Institutional Buyers (QIBs), up to 15 percent for Non-Institutional Investors (NIIs), and a maximum of 10 percent was earmarked for Retail Investors.
The Yatra Online IPO encompassed a fresh issuance of shares worth Rs 602 crore and an offer for sale (OFS) of up to 12.2 million shares by a promoter and an existing investor.
The proceeds from the IPO are intended to support the company's strategic investments, acquisitions, technology development, customer acquisition, and organic growth initiatives.
Key entities involved in managing the IPO included SBI Capital Markets Ltd, DAM Capital Advisors Ltd, IIFL Securities Ltd as book running lead managers, and Link Intime India Private Ltd as the offer's registrar.
