Yatra Online Limited is all set to take flight with its Initial Public Offering (IPO), scheduled to open for subscription on September 15, 2023. As a significant player in the Indian travel and hospitality industry, Yatra Online’s IPO is creating quite a buzz in the market. In this comprehensive article, we will provide you with an in-depth analysis and review of the Yatra Online IPO, covering vital information, key dates, potential upsides, downsides, and a balanced conclusion, enabling you to make an informed investment choice.
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Yatra Online IPO Details
| IPO Opening Date | 15-Sep-23 |
| IPO Closing Date | 20-Sep-23 |
| IPO Listing Date | 29-Sep-23 |
| Issue Type | Book Built Issue IPO |
| Face Value | Rs 1 per equity share |
| IPO Price band | Rs 135 to Rs 142 per equity share |
| Lot Size | 105 Shares |
| Min Order Quantity | Shares |
| Listing at | BSE and NSE |
| Total Issue Size | Rs. 765.35 Crores |
| Fresh issue | Rs. 602 Crores |
| OFS | Rs. 163.35 Crores (approx) |
Yatra Online IPO Timetable
| IPO Opens on | 15-Sep-23 |
| IPO Closes on | 20-Sep-23 |
| Basis of Allotment | 25-Sep-23 |
| Initiation of Refunds | 26-Sep-23 |
| Credit of Shares to Demat | 27-Sep-23 |
| Listing Date | 29-Sep-23 |
| Cut-off time for UPI mandate confirmation | 20-Sep-23 |
About Yatra Online Limited
Yatra Online Limited, founded in 2005, is a one-stop destination for travel information, pricing, bookings, and more. The company offers a wide range of services, including domestic and international air ticketing, bus and rail ticketing, cab bookings, hotel reservations, and ancillary services.
With a colossal network of over 94,000 hotels and homestays in approximately 1,400 cities across India and more than 2 million hotels worldwide, Yatra Online is India’s largest platform for domestic hotels. The company also recently ventured into the freight forwarding business with Yatra Freight, expanding its corporate services.
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Yatra Online IPO Financial Snapshot
Here’s a glimpse of Yatra Online’s financials for the past three years.
| Financial Year ending / Period ending (Amt in Crores) | |||
| Particulars | FY21 | FY22 | FY23 |
|---|---|---|---|
| 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 Borrowing | 13.11 | 35.86 | 153.07 |
Key Performance Indicators
- P/E (x): Approximately 205.8
- ROE: 18.1%
- ROCE: 26.0%
- Debt/Equity: 0.9
- EPS (Rs): 0.69
- RoNW: 4.50%
IPO Valuation Analysis
The IPO price band for Yatra Online is set at ₹ 135 to ₹ 142 per share. Here’s how the valuation stacks up:
- If we consider last year FY23 EPS of Rs 0.69, P/E ratio works out to be 206x.
- Company generated losses for FY21 and FY22, hence last 3 years weighted average EPS is negative, hence cannot compute P/E ratio.
- There is only one listed company i.e. Easy Trip Planners which is trading at P/E 56x.
- While company moved from loss making to profit making from FY23 and it might not be appropriate to compare for 1 year, the IPO is over priced.
Yatra IPO – GMP
While it is extremely difficult to check the accuracy, Yatra IPO GMP is not available at any of the leading websites.
Yatra Online IPO – Positive Factors
- Diverse Customer Base: Yatra Online serves a wide range of customers, reducing dependence on any single sector.
- Strong Revenue Growth: The company has demonstrated consistent revenue growth, indicating its strong market position.
- Expansion Efforts: With ventures like Yatra Freight, Yatra Online is showing commitment to innovation and diversification.
Yatra Online IPO – Risk Factors
- Competition: The travel industry is highly competitive, and new entrants could affect market share.
- Fluctuating Travel Preferences: Changes in travelers’ preferences could impact the demand for travel services and accommodations.
- Financial Challenges: Yatra Online’s past financial losses and negative cash flows could pose challenges.
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Yatra IPO Review – Conclusion
Investing in the Yatra Online IPO presents both opportunities and challenges. Here’s a balanced view:
Pros:
- Diverse customer base.
- Steady revenue growth.
- Expansion efforts.
- Commitment to innovation.
Cons:
- Company incurred losses for 2 financial years out of last 3 financial years.
- Stiff competition in the industry.
- Fluctuating travel preferences.
- Financial challenges.
Company has turned from loss making to profit making. We are not sure how long such thin profits would continue and when such profits would grow to sizeable amount. Till such time, we do not know whether we are paying the right price for the IPO or not.
Currently we are neutral about this IPO.
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Very useful information regarding the new ipos coming in the resent past. Thanks for you suggestions.
Very well analysed. I shall be thankful to you if you elaborate the type of assets this type of online travel companies possess.