The much-anticipated initial public offering (IPO) of Juniper Hotels Limited, operating under the esteemed ‘Hyatt’ brand, has commenced today, February 21, with the offer slated to conclude on February 23.
With an IPO size of Rs 1,800 crore, the price band has been set between Rs 342 to Rs 360 per share, exclusively offering new shares, without any offer for sale (OFS).
Examining Juniper Hotels IPO: Insights and Considerations
On the positive front, the company benefits from seasoned promoters and the backing of the renowned Hyatt brand, bolstering its equity investment.
With ambitious expansion plans, including a merger with another listed entity to fortify its portfolio, Juniper Hotels is poised for growth.
However, concerns linger regarding its consistent losses over the past three fiscal years and the requisite high capital expenditure for expansion, alongside potential conflicts of interest among promoters.
Investment Decision: To Apply or Not?
For investors with a high-risk appetite, Zee Business suggests considering Juniper Hotels IPO as a long-term investment opportunity. However, prudence dictates waiting until after listing before making a purchase.
Financial Performance Overview
Despite recent losses, Juniper Hotels exhibits promising operational growth, with its operating income surging to Rs 666.85 crore in the financial year 2022-23, a significant rise from Rs 308.69 crore in the previous year.
Moreover, the company’s net loss narrowed to Rs 1.5 crore in the last fiscal year, marking a substantial improvement from Rs 188.03 crore in 2021-22.
As investors weigh the potential risks and rewards, Juniper Hotels IPO unveils an intriguing opportunity within the hospitality sector, offering a glimpse into the future prospects of the renowned Hyatt brand.
