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Yatra Online Gets SEBI's Nod To Float IPO

The proposed IPO includes a fresh issue of equity shares worth up to Rs 750 crore by Yatra India and an offer-for-sale of up to 9,328,358 equity shares.

<div class="paragraphs"><p>(Source:   Markus Winkler/Unsplash)</p></div>
(Source: Markus Winkler/Unsplash)

Yatra Online Inc. said its Indian subsidiary Yatra Online Ltd. has received capital markets regulator's clearance to float an initial public offering.

The proposed IPO comprises a fresh issue of equity shares worth up to Rs 750 crore by Yatra India and an offer-for-sale of up to 9,328,358 equity shares, according to the draft red herring prospectus.

As part of the OFS, THCL Travel Holdings Cyprus Ltd. and Pandara Trust - Scheme I through its trustee Vistra ITCL (India) would offload shares.

Yatra Online has received the final observation letter dated Nov. 17 from the Securities and Exchange Board of India in connection with its DRHP filed in March, the Nasdaq-listed company said in a statement.

In SEBI's parlance, receiving an observation letter implies its go ahead to float the IPO.

The proposed IPO can open for subscription within a period of 12 months from the date of issuance of the observation letter, the statement noted.

Going by the draft papers, the travel services provider plans to utilise the net proceeds from the fresh issue for strategic investments, acquisitions and inorganic growth and investment in customer acquisition and other organic growth initiatives.

The proceeds would also be utilised for general corporate purposes.    

The company is the leading corporate travel service provider in India with approximately 700 large corporate customers and over 46,000 registered SME customers.

SBI Capital Markets Ltd, DAM Capital Advisors Ltd and IIFL Securities Ltd are the book-running lead managers for the issue.