Yatra Online Limited is gearing up for an initial public offering (IPO) scheduled to begin offering on September 15, 2023. As a key player in the Indian travel and hospitality industry, Yatra Online’s IPO has generated considerable buzz in India. market. This comprehensive article provides a detailed analysis and review. Yatra Online IPOIt covers important information, key dates, potential upside, downside, and balanced conclusions to help you make informed investment choices.
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Yatra Online IPO details
| IPO start date | September 15, 23 |
| IPO deadline | September 20, 2023 |
| IPO listing date | September 29, 2023 |
| Type of problem | Book Built Issue IPO |
| face value | 1 rupee per share |
| IPO price range | 135 to 142 rupees per share |
| lot size | 105 shares |
| Minimum order quantity | stock |
| Exhibition location | BSE and NSE |
| Total issue size | Rs. 765.35 billion |
| Latest issue | Rs. 620 million dollars |
| OFS | Rs. 163.35 billion (approx.) |
Yatra Online IPO Schedule
| IPO start date | September 15, 23 |
| The IPO will close in | September 20, 2023 |
| Basis for allocation | September 25, 23 |
| Initiate refund | September 26, 23 |
| Credit of shares to Demat. | September 27, 23 |
| Listing date | September 29, 2023 |
| Deadline time for UPI obligation confirmation | September 20, 2023 |
About Yatra Online Limited
Established in 2005, Yatra Online Limited is a one-stop-shop for travel information, pricing, reservations, and more. The company offers a wide range of services including domestic and international air tickets, bus and train tickets, taxi bookings, hotel bookings and ancillary services.
With a huge network of over 94,000 hotels and homestays in around 1,400 cities across India and over 2 million hotels worldwide, Yatra Online is India’s largest platform for domestic hotels. The company has recently entered the freight transportation business with Yatra Freight, expanding its corporate services.
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Yatra Online IPO Financial Snapshot
A glimpse of Yatra Online’s financial performance over the past three years.
| Fiscal year end/period end (amount in billions) | |||
| detail | FY21 | FY22 | 23rd year |
|---|---|---|---|
| assets | 562.91 | 547.78 | 681.25 |
| revenue | 143.62 | 218.81 | 397.47 |
| Profit after tax | -118.86 | -30.79 | 7.63 |
| net worth | 123.49 | 100.93 | 169.52 |
| Total loan amount | 13.11 | 35.86 | 153.07 |
Key performance indicators
- PER (times): Approx. 205.8
- ROE：18.1%
- Rosé: 26.0%
- Debt/Equity: 0.9
- EPS (Rupees): 0.69
- RoNW: 4.50%
IPO valuation analysis
Yatra Online’s IPO price range has been set at ₹ 135 to ₹ 142 per share. If you add up the valuations, it will look like this:
- Considering last year’s FY2023 EPS was 0.69 rupees, the P/E ratio is 206 times.
- Since the company made losses in FY21 and FY22, the weighted average EPS for the past three years is negative, so the P/E ratio cannot be calculated.
- There is only one listed company. Namely, Easy Trip Planners, which trades at a P/E ratio of 56x.
- The company has been in the black since fiscal 2023, so it may not be appropriate to make a one-year comparison, but the IPO price is too high.
Yatra IPO – GMP
Although it is very difficult to verify its accuracy, Yatra IPO GMP is not available on major websites.
Yatra Online IPO – Positive Elements
- Diverse customer base: Yatra Online serves a wide range of customers and reduces dependence on a single sector.
- Significant revenue growth: The company has shown consistent revenue growth, indicating a strong position in the market.
- Expansion efforts: Along with ventures like Yatra Freight, Yatra Online is demonstrating its commitment to innovation and diversification.
Yatra Online IPO – Risk Factors
- competition: The travel industry is highly competitive and new entrants can impact market share.
- Changing travel preferences: Changes in traveler preferences can impact demand for travel services and accommodations.
- Financial challenges: Yatra Online’s historical financial losses and negative cash flow can be a challenge.
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Yatra IPO Review – conclusion
Investing in Yatra Online IPO comes with both opportunities and challenges. A balanced view is:
Strong Points:
- Diverse customer base.
- Steady revenue growth.
- Expansion efforts.
- Commitment to innovation.
Cons:
- The Company has incurred losses in two of the past three fiscal years.
- Intense competition within the industry.
- Changing travel preferences.
- Financial challenges.
The company went from being in the red to being in the black. We don’t know how long such thin profits will last, or when they will grow into large profits. Until then, we won’t know if we are paying the right price for the IPO.
We are currently in a neutral position regarding this IPO.
Suresh KP is the founder of Myinvestmentideas. He is a NISM Certified Investment Advisor and he is a NISM Certified Research Analyst. I have been analyzing financial markets for the past 20 years. He can be reached at suresh@myinvestmentideas.com.
