Juniper Hotels Limited IPO Details
- Issue Type: Main Board IPO
- Issue Size: ₹ 1,800 Cr (Fresh Issue Only)
- Price Band: ₹ 342 – ₹ 360 per share
- Minimum Lot Size: 40 Shares
- Open Date: February 21, 2024
- Close Date: February 23, 2024
- Listing Date: February 28, 2024 (Expected)
- Book Running Lead Managers: Axis Capital Limited, ICICI Securities Limited, Kotak Mahindra Capital Company Limited, SBI Capital Markets Limited
- Registrar: Kfin Technologies Limited
Juniper Hotels Limited IPO Timeline
| IPO Open Date: | February 21, 2024 |
| IPO Close Date: | February 23, 2024 |
| Basis of Allotment: | February 26, 2024 |
| Refunds: | February 27, 2024 |
| Credit to Demat Account: | February 27, 2024 |
| IPO Listing Date: | February 28, 2024 |
About
Juniper Hotels Limited is a hotel management company operating under “The Fern”, “Ginger”, and “Yolo” brands across India.The company currently operates 82 hotels with over 8,000 rooms across 48 locations in India.It focuses on mid-market and upscale hotels, targeting both business and leisure travelers.
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’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. Finally, Hyatt Raipur is the only upper upscale hotel in Raipur.
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.
The company has been honored with several awards, including the “Best Luxury Business Hotel in Delhi” at the Today’s Traveller Awards in 2022 for Andaz Delhi, and the “Best 5 Star Hotel in Gujarat” at the Gujarat Tourism Awards in 2022 for Hyatt Regency Ahmedabad.
OBJECTIVE
- Expansion of existing hotels and brands.
- Acquisition of new hotels and brands.
- Repayment of debt.
POSITIVE
- Strong brand presence in the mid-market and upscale hotel segments.
- Experienced management team with a proven track record.
- Growing demand for hotels in India, especially in the budget and mid-market segments.
NEGATIVE
- Limited geographical presence outside India.
- Relatively high debt levels.
- Dependence on the performance of the tourism and hospitality industry.
So, how does Juniper Hotels Limited IPO Fare in Terms of Financials ?
Financial Details
| Period Ended | 30 Sep 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 3,837.83 | 3,020.27 | 3,069.86 | 3,055.54 |
| Revenue | 337.43 | 717.29 | 343.76 | 192.85 |
| Profit After Tax | -26.50 | -1.50 | -188.03 | -199.49 |
| Net Worth | 859.67 | 354.51 | 356.37 | 543.90 |
| Reserves and Surplus | 687.17 | 210.81 | 212.67 | 400.20 |
| Total Borrowing | 2,252.75 | 2,045.61 | 2,121.81 | 1,830.48 |
| Amount in ₹ Crore | ||||
FINANCIAL REVIEW
Positives:
- Increasing Revenue: Revenue has grown steadily over the past four years, indicating increased demand for their services.
- Improved Profitability: After incurring losses in previous years, the company achieved profitability in FY23 with a profit after tax of ₹ 52 Cr.
- Stable Net Worth: Net worth has remained relatively stable despite losses in earlier years, demonstrating some financial stability.
- Reasonable Debt-to-Equity Ratio: While debt levels are high at ₹ 2,252.75 Cr, the debt-to-equity ratio of 1.4x is within a manageable range.
Negatives:
- Historical Losses: The company has a history of losses prior to FY23, raising concerns about long-term sustainability.
- Dependence on Tourism: Their performance is heavily tied to the tourism industry, which is vulnerable to external factors.
- Limited Geographical Reach: Currently focused on India, with minimal diversification, increasing risk concentration.
Juniper Hotels Limited IPO Valuation
| Earning Per Share (EPS): | -₹0.10 per Equity Share |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | –0.42% |
| Net Asset Value (NAV): | ₹24.67 per Equity Share |
- The company’s revenue has grown at a CAGR of 23% over the past three years.
- It has been profitable in the last two years, with a profit after tax of ₹ 52 Cr in FY23.
- However, the company’s debt-to-equity ratio is relatively high at 1.4x.
Juniper Hotels IPO – SWOT Analysis
Strengths
- Strong brand presence: Recognized brands like “The Fern”, “Ginger”, and “Yolo” with presence in diverse segments (mid-market, upscale).
- Experienced management: Team with proven track record in the hospitality industry.
- Growth potential: Expanding Indian market, particularly in budget and mid-market segments.
- Profitability: Achieved profitability in the past two years, demonstrating positive financial performance.
Weaknesses
- Limited geographic reach: Primarily focused on India, lacking diversification globally.
- High debt levels: Debt-to-equity ratio of 1.4x might raise concerns about financial stability.
- Reliance on tourism: Vulnerable to fluctuations in tourism and hospitality industry performance.
- Competition: Faces established players and new entrants in the Indian hotel market.
Opportunities
- Brand expansion: Potential to further develop existing brands and explore new segments.
- Geographic diversification: Scope for international expansion to mitigate dependence on India.
- Technology adoption: Implementing technology solutions to improve efficiency and guest experience.
- Rising disposable income: Growing domestic tourism with increasing disposable income can benefit the company.
Threats
- Economic slowdown: Economic downturns could decrease travel demand and impact profitability.
- Regulatory changes: Government regulations in the tourism or hotel industry could affect operations.
- Currency fluctuations: Foreign exchange fluctuations can impact costs and revenue for international tourists.
- Sustainability concerns: Increasing focus on sustainable practices might require additional investments.
COMPETITIVE ANALYSIS: MARKET PEERS
Here are some of the key market peers of Juniper Hotels Limited IPO:
Peers:
- Chalet Hotels Limited
- Lemon Tree Hotels Limited
- The Indian Hotels Company Limited
- EIH Limited
Juniper Hotels IPO GMP
- Grey market premium as on 12-02-2024= Rs – / Share
Disclaimer:
- IPO Grey Market Premium (Juniper Hotels Limited IPO GMP) mention is valid for the specific date as mentioned in the header.
- We are not buying and selling IPO forms on IPO Grey Market.
- Do not subscribe for IPO by just seeing premium Price as it may change anytime before listing. Subscribe only considering Fundamentals of the companies.
Juniper Hotels Limited IPO
🔴 Live Subscription Status 🔴
21/02/2024 10:00 AM
| | NO OF SHARES OFFERED | Day 1 | Day 2 | Day 3 |
| Qualified Institutional Buyers(QIBs) | ||||
| Non Institutional Investors(NIIs) | ||||
| Retail Individual Investors(RIIs) | ||||
| Employees | ||||
| Total |
FINAL TAKEAWAY
- To Be Updated
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