Juniper Hotels lists at a 1.4% premium at Rs 365 per share

Juniper Hotels Limited is a luxury hotel development and ownership company, that debuted on the Indian stock market today.

The stock of Juniper Hotel opened at Rs 361.20 per share, reflecting a premium of 0.33% compared to the final issue price of Rs 360 per share on the BSE. The market capitalization of the company stands at Rs 8,242 crore on the BSE, and the stock is currently trading at Rs 370 per share on the BSE. Conversely, the stock opened at Rs 365 per share on the NSE, representing a premium of 1.38% compared to the final issue price.

IPO Proceeds:

The net proceeds of the issue will be allocated for specific purposes. Firstly, the funds will be utilized for the repayment, prepayment, or redemption of certain outstanding borrowings incurred by the company and its recent acquisitions, namely CHPL and CHHPL. Additionally, the proceeds will be directed toward general corporate purposes, contributing to the overall financial stability and operational needs of the company.

Company profile:

Juniper Hotels Limited is a luxury hotel development and ownership company. As of September 30, 2023, the company operates seven hotels and serviced apartments with a total of 1,836 rooms. The company was incorporated in September 1985.

The company’s hotels and serviced apartments in Mumbai, Delhi, Ahmedabad, Lucknow, Raipur, and Hampi are landmarks in the luxury, upper upscale, and upscale categories. Grand Hyatt Mumbai Hotel and Residences is India’s largest luxury hotel, while Hyatt Regency Lucknow and Hyatt Regency Ahmedabad are the biggest upper upscale hotels in their respective markets.

Juniper Hotels is co-owned by Saraf Hotels Ltd and Two Seas Holdings Ltd, an affiliate of Hyatt Hotels Corporation, forming a strategic partnership between a hotel developer and an international hospitality company. Currently, the company has 116 serviced apartments in Grand Hyatt Mumbai and 129 serviced apartments in Hyatt Delhi.

Subscription details:

On February 23, 2024, the final day of the IPO window, the IPO experienced a moderate response, garnering a subscription rate of 2.18 times. The public issue garnered moderate interest, with the retail category being subscribed 1.31 times, and the QIB and NII categories reaching subscription rates of 3.11 and 0.89 times, respectively.

The IPO price band was between Rs 342 to Rs 360 per share, with a face value of Rs 10 per share and a lot size of 40 shares. The total size of the company’s IPO was Rs 1800 crore, and the final share issue price was fixed at Rs 360 each.

Conclusion:

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Investors who applied for listing gains only have been disappointed due to the almost flat listing on the listing day and can choose to close their position. On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which could prove to be beneficial.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.