Juniper Hotels Limited IPO: An Overview and Corporate Insight
Established in September 1985, Juniper Hotels Limited is a company specialising in the development and ownership of upscale hotels. As of September 30, 2023, the company manages a portfolio consisting of seven hotels and serviced apartments, totaling 1,836 rooms.
These properties, located in Mumbai, Delhi, Ahmedabad, Lucknow, Raipur, and Hampi, are renowned in the luxury, upper upscale, and upscale segments. Notably, the Grand Hyatt Mumbai Hotel and Residences stands as India’s largest luxury hotel, while the Hyatt Regency Lucknow and Hyatt Regency Ahmedabad are the leading upper upscale accommodations in their respective regions. Furthermore, Hyatt Raipur holds the distinction of being the sole upper upscale hotel in Raipur.
Juniper Hotels operates through a partnership between Saraf Hotels Ltd and Two Seas Holdings Ltd, an affiliate of Hyatt Hotels Corporation. This collaboration signifies a strategic alliance between a local hotel developer and an esteemed international hospitality firm.
Grey Market Premium Analysis and IPO Timelines – Juniper Hotels IPO
| Date | GMP |
| February 20 | ₹5 |
| February 19 | ₹5 |
| February 18 | ₹10 |
| February 17 | ₹10 |
| February 16 | ₹10 |
Given the price band of ₹360.00 for the Juniper Hotels IPO, and considering the estimated listing price of ₹365.00 (which includes the cap price plus today’s Grey Market Premium), the expected percentage gain per share is approximately 1.39%.
Pricing Details and Lot Size – Juniper Hotels Limited IPO
The price band for Juniper Hotels IPO is ₹342 to ₹360 per share.
Book-Running Lead Managers and Registrar – Juniper Hotels Limited IPO
JM Financial, CLSA India, and ICICI Securities are the joint Book Running Lead Manager (BRLM) to the issue while KFin Technologies is the Registrar.
Offer for Sale and IPO Size Breakdown – Juniper Hotels Limited IPO
Juniper Hotels is launching an Initial Public Offering (IPO) as a book-built issue worth Rs 1,800.00 crores. The IPO comprises entirely fresh shares amounting to 5 crore shares.
IPO Price Band and Lot Size –Juniper Hotels Limited IPO
The price band for the Juniper Hotels IPO is set at ₹342 to ₹360 per share. The minimum lot size for an application is 40 shares, requiring a minimum investment of ₹14,400 for retail investors. For sNII (non-institutional investors), the minimum lot size investment is 14 lots (560 shares), amounting to ₹201,600, while for bNII (qualified institutional buyers), it is 70 lots (2,800 shares), totaling ₹1,008,000.
IPO Timelines at a Glance – Juniper Hotels Limited IPO
| Event | Date |
| IPO Opening Date | February 21,2024 |
| IPO Closing Date | February 23, 2024 |
| IPO Allotment Date | February 26, 2024 |
| Initiation of Refunds | February 27, 2024 |
| Credit of Shares to Demat | February 27, 2024 |
Utilisation of Fresh Issuance and Technological Advancements – Juniper Hotels Limited IPO
The net proceeds from the Issue, calculated as the gross proceeds minus the Issue-related expenses, are intended to be allocated as follows:
– Repayment, prepayment, or redemption, either in full or in part, of specific outstanding borrowings obtained by the Company and its recent acquisitions, CHPL and CHHPL.
– Funding general corporate purposes.
Conclusion
Despite experiencing negative trends in profitability at the Profit After Tax (PAT) level, Juniper Hotels Limited remains the top gross profit earner in the hospitality sector, boasting a reputable global brand in “Hyatt” and a strong global investor partner. While the company currently faces a negative Price-to-Earnings (P/E) ratio due to its net loss status, it presents an opportunity for informed investors to invest with the expectation of significant returns over the medium to long term.
Frequently Asked Questions (FAQ) – Juniper Hotels Limited IPO
Q. What does Juniper Hotels Limited Ltd. specialise in?
A. Established in September 1985, Juniper Hotels Limited is a company specialising in the development and ownership of upscale hotels.
Q. What is the primary purpose of Juniper Hotels Limited’s IPO?
A. The primary purpose is repayment/pre-payment of existing loan.
Q. Who are the lead managers for Juniper Hotels Limited’s IPO?
A. JM Financial, CLSA India, and ICICI Securities are the joint Book Running Lead Manager (BRLM) to the issue
Q. How is the IPO structured in terms of new issuance and offer for sale (OFS)?
A. Juniper Hotels is launching an Initial Public Offering (IPO) as a book-built issue worth Rs 1,800.00 crores. The IPO comprises entirely fresh shares amounting to 5 crore shares.
Q. What is the lot size and minimum investment for retail investors in Juniper Hotels Limited IPO?
A. The minimum lot size for an application is 40 shares, requiring a minimum investment of ₹14,400 for retail investors.
Q. What is the price band for Juniper Hotels Limited IPO?
A. The price band for Juniper Hotels IPO is ₹342 to ₹360 per share.
Q. How has the Grey Market Premium (GMP) trended for Juniper Hotels Limited IPO?
A. The GMP for today is Rs.5.
Q. When does the IPO open and close for subscription?
A. Juniper Hotels IPO will open for subscription on February 21 and close on February 23.
Q. When is the allotment date for Juniper Hotels Limited IPO?
A. The finalisation of the basis of allotment for Juniper Hotels IPO will be done on February 26 2024, and the allotted shares will be credited to investors’ demat accounts by February 27.
Q. When is Juniper Hotels Limited expected to be listed on the stock exchanges?
A. The equity shares of Juniper Hotels are proposed to be listed on February 28 ,2024, on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
