Indian hotel firm Juniper Hotels has filed a so-called “Draft Red Herring Prospectus” with the Securities & Exchange Board of India for an initial public offering worth 18 billion Indian rupees ($216.7 million), India’s Economic Times reports.
The news outlet reports that taking the Kolkata-based firm public is meant to help offset debt. Juniper Hotels is a joint venture consisting of Juniper Investments, Saraf Hotels Enterprises and Hyatt Hotels Corp., which through indirect subsidiary Two Seas Holdings owns 50% of Juniper Hotels’ pre-issue equity share capital.
Juniper is the largest owner of Hyatt hotels in India, with assets including the Andaz Delhi, Grand Hyatt Mumbai, Hyatt Regency Ahmedabad, Hyatt Regency Lucknow and Hyatt Regency Raipur.
The Verve Times reports that “the proceeds from the fresh issue … will be used for repayment, prepayment or redemption, in full or in part, of certain outstanding borrowings availed by the company and its subsidiaries and for general corporate purposes.”
Citing the Securities & Exchange filing, the Verve Times added that “for fiscal year 2023, [Juniper’s] total income has been recorded at [8.3 billion rupees]. Its losses narrowed substantially to [12 million rupees] in fiscal year 2023 from [1.9 billion rupees] in fiscal year 2022. It has one of the highest [earnings before interest, taxes, depreciation and amortization] margins among hotel owner companies in full-year 2023.”
Saraf opened its first hotel, Kathmandu, Nepal’s Yak & Yeti, in 1977 and debuted its partnership with Hyatt, via Asian Hotels Ltd., in India in 1980 with the 550-room Hyatt Regency New Delhi.
As of June 30, Juniper owns seven hotels with 1,836 rooms.