Yatra Online IPO Review

Yatra Online IPO plans to raise Rs 775.00 crores. The issue is a combination of fresh issue of 4.24 crore shares aggregating to Rs 602.00 crores and offer for sale of 1.22 crore shares aggregating to Rs 173.00 crores. The OFS comprises up to 1,17,51,739 shares by THCL Travel Holding Cyprus and up to 4,31,360shares by Pandara Trust Scheme-I. Yatra Online Limited provides information, pricing, availability, and booking facilities for domestic and international customers.

IPO opensSep 15, 2023
IPO ClosesSep 20, 2023
IPO Size (Rs.)₹775.00 Cr
IPO Size (shares)54,577,465 shares
Breakup Fresh issue ₹602.00 Cr + OFS ₹173.00 Cr
Face Value:₹ 1
IPO Price in Rs :₹135 to ₹142 per share
Minimum Lot105 Shares
Anchor & QIB Quota75%
NII Quota15%
Retail Quota10%
 Lead ManagerSBI Capital Markets, DAM Capital, IIFL
RegistrarLink intime

About Yatra Online Limited:

  • Yatra Online Limited (“Yatra”) was incorporated on December 28, 2005.
  • Yatra is India’s largest corporate travel services provider in terms of number of corporate clients and the 3rd largest online travel company in India among key OTA players in terms of gross booking revenue and operating revenue.
  • for Fiscal Year 2023. Yatra has largest number of hotel and accommodation tie- ups amongst key domestic OTA players of over 2,105,600 tie-ups, as on March 31, 2023.
  • Yatra is the leading corporate travel service provider in India with 813 large corporate customers and over 49,800 registered SME customers and the 3rd largest consumer online travel company (OTC) in the country in terms of gross booking revenue for Fiscal 2023.
  • Company’ caters to B2C (business to consumer) and B2B (business to business which includes business to enterprise and business to agents).
  • Yatra Online Limited has also provides access through their siteto hotels, homestays, and other accommodations, with about 105,600 hotels in 1,490 cities and towns in India, as on Fiscal 2023 and more than 2 million hotels globally,.

Financials: Yatra Online IPO

Particulars / Rs LacsFYE23FYE22FYE21
Revenue from Operations380.16198.07125.45
Revenue Growth (%)91.93%57.89%
Adj. EBITDA66.9732.15-5.06
Adj. EBITDA Margin (%)17.62%16.23%-4.04%
Profit/Loss before Tax12.18-29.27-112.23
Net Profit/Loss for the year7.63-30.79-118.86
Net Profit Margin (%) as stated2.01%-15.54%-94.75%
Share Capital11.4511.1911.09
Net Worth169.52100.93123.49
EPS – Basic & Diluted (₹)0.69-2.76-11.08
RONW (%) as stated4.50%-30.50%-96.26%
Net Asset Value (₹) as stated15.049.0411.51
Post issue Share Capital15.43
IPO price142.0
EPS Fy230.5
PE Fy23287.1
Market cap in Lacs2,190.9
Market Cap/sales5.8

Anchor: Yatra Online IPO

Yatra Online IPO: Salient Points

  • Post the IPO, Promoters holding will come down from 100% to 73.64%.
  • The Indian travel industry is expected to grow at a 9-11% CAGR during FY23-28 period to reach Rs ~45000 billion in FY28.
  •  The company business is based on a common technology platform that serves their customers through multiple mobile applications as well as their website www.yatra.com. Their technology platform has been designed to deliver a high level of reliability, security, scalability, integration and innovation.
  • During the 2nd quarter of fiscal year 2018 and 4th quarter of fiscal year 2019, they completed the acquisition of a majority stake in Yatra For Business Pvt Ltd and the corporate division of PL Worldways known as Travel.co.in Ltd, or TCIL, which strengthen leadership position in the B2B category.
  • It is one of the well-recognized travel brands and caters to both leisure and business travelers.
  • Yatra has raised significant amount ( Rs. 1500 crore or more) since its inception but yet operations have resulted in meager profits.
  • While , the company’s revenue has grown at a CAGR of 74% from FY21-23 driven by post COVID demand, however, it has been posting losses and a small profit last year.
  • This is indicative of high competition and low margins in travel industry.
  • It has a high dependence on Air ticketing business (~47% of revenue)
  • The net proceeds from IPO will be used as below
ObjectsAmount ( ₹ Cr)
Strategic investments, acquisitions, and inorganic growth;150.00
Investment in customer acquisition and retention, technology, and other organic growth initiatives;392.00
General Corporate Purposesrest
  • Easy Trip Planners Ltd with sales of 448 Cr in FY23 which is higher than Yatra sales has much better profit margins and is still quoting at a PE of 49.8. Thus Yatra does not seem attractive to me and Iam not willing to pay such difference just on brand recall.
  • Yatra Online IPO is coming at a PE ratio of 287x(fy23 earnings).
  • I do not intend to apply in Yatra Online IPO.
  • GMP as reported on social media is almost NIL.

Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.

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