Juniper Hotels IPO:
Welcome, investors and hospitality enthusiasts! Juniper Hotels, the largest owner of Hyatt-affiliated properties in India, is poised to take off with its upcoming IPO. But before you book your metaphorical ticket, Let’s examine the specifics and factors to consider with this much-awaited release.
Juniper Hotels IPO: Company Profile:
- Incorporated:
September 1985 - Business:
Luxury hotel development and ownership - Hotel Portfolio:
Operates seven hotels and serviced apartments with a total of 1,836 rooms - Locations:
Mumbai, Delhi, Ahmedabad, Lucknow, Raipur, and Hampi - Notable Properties:
- Grand Hyatt Mumbai Hotel and Residences (India’s largest luxury hotel)
- Hyatt Regency Lucknow and Hyatt Regency Ahmedabad (most prominent upper upscale hotels in their respective markets)
- Hyatt Raipur (the only upper upscale hotel in Raipur)
Shareholding Pre-Issue:
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- Promoters hold 100% of the company.
- Co-owned by Saraf Hotels Ltd and Two Seas Holdings Ltd (an affiliate of Hyatt Hotels Corporation).
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Juniper Hotels IPO: The Basics:
IPO Dates:
February 21st – 23rd, 2024
Issue Price:
₹342 – ₹360 per share
Issue Size:
₹1,800 crore
Offer Type:
Book Built Issue (BBI)
Reservation:
75% for QIBs, 15% for NIIs, 10% for Retail
Highs and Lows:
A Look at the Financials
Revenue:
Juniper’s revenue has grown impressive, jumping from ₹1,663.51 million in 2021 to ₹6,668.54 million in 2023.
Profitability:
However, the company has also reported consistent losses, slightly improving from ₹-188.03 crore in 2022 to ₹-1.50 crore in 2023.
Return on Equity (ROE):
Negative ROE in all three years, indicating the company hasn’t generated enough profit to cover shareholder investments.
Positives to Consider:
Strong Brand Partnership: Juniper enjoys a long-standing partnership with Hyatt, a globally recognised hospitality brand with a strong reputation.
Growth Potential:
In the upcoming years, the luxury hotel sector in India will experience substantial expansion, offering Juniper a possible opportunity.
Experienced Management:
The company boasts a team with extensive experience in the hospitality industry.
Juniper Hotels IPO: Potential Concerns:
Profitability:
The consistent losses raise questions about the company’s ability to generate sustainable profits in the future.
Debt Burden:
Juniper has a significant debt burden, which could impact its financial flexibility.
Valuation:
The IPO price might be high, considering the company’s current financial performance.
Juniper Hotels IPO: Do you think you should invest?
Ultimately, the choice is based on your investing objectives and risk tolerance. Before deciding, please look over the company’s strengths and weaknesses, market trends, and your financial situation.
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This is not financial advice. Please always research and consult a qualified financial advisor before making investment decisions.
This comprehensive blog post helps you navigate the Juniper Hotels IPO with informed insights. Happy investing!
