Juniper Hotels Ltd, the hospitality player operating under the renowned Hyatt brand, witnessed a strong market debut as its shares soared over 10% on the Bombay Stock Exchange (BSE). The stock, listed at Rs 361.20, experienced a steady ascent throughout the day, eventually reaching an impressive Rs 397.30, marking a promising start for the company in the public market.
Juniper Hotels, renowned for its upscale offerings under the Hyatt brand, made its stock market debut with a robust performance. The IPO, which garnered significant attention from investors, reflects the positive sentiment surrounding Juniper Hotels in the market.
Company Background:
Juniper Hotels, a key player in the hospitality sector, operates under the globally acclaimed Hyatt brand. With a diverse portfolio of seven hotels and serviced apartments as of September 2023, Juniper Hotels caters to various segments within the luxury and upscale categories of the Indian hotel industry.
The stock debuted at Rs 361.20 on the BSE, exhibiting a marginal increase of 0.33% from its issue price of Rs 360. However, as the trading day unfolded, Juniper Hotels witnessed a notable surge, crossing the 10% mark to reach Rs 397.30. On the National Stock Exchange (NSE), the stock started at Rs 365, showcasing a 1.38% gain to Rs 397.70.
Juniper Hotels IPO Highlights:
The Juniper Hotels IPO, which closed on Friday, was oversubscribed 2.08 times. The offering comprised fresh equity shares amounting to Rs 1,800 crore, with a pricing range of Rs 342-360 per share. Notably, the IPO’s success positions Juniper Hotels as a noteworthy player in the Indian hospitality sector.
Out of the total funds raised, Rs 1,500 crore is earmarked for the repayment of debt held by Juniper Hotels and its subsidiaries, namely Chartered Hotels Pvt Ltd and Chartered Hampi Hotels Pvt Ltd. The remaining funds will be directed towards general corporate purposes, enhancing the company’s financial resilience.
As of September 2023, Saraf Hotels holds a substantial 44.68% stake in Juniper Hotels, while Two Seas Holdings possesses a 50% stake. The remaining 5.32% shareholding is with Juniper Investments, reflecting a diverse and strategic ownership structure.
Conclusion:
Juniper Hotels’ impressive stock market debut, coupled with the oversubscribed IPO, underscores the confidence and positive reception from investors. The utilization of funds for debt repayment and corporate purposes positions Juniper Hotels for sustained growth and competitiveness within the dynamic hospitality industry.
