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Nasdaq-listed MakeMyTrip, an online travel portal, plans to raise about ₹438 crore ($73 million) through a follow-on public offer of equity shares.
The company has proposed to utilise the proceeds to expand its services to new geographic markets and pursue selective strategic partnerships and acquisitions.
The company plans to expand its hotel and packages business and tap new technology platform to widen its reach. It will also increase its product portfolio to enhance cross-selling opportunities.
The company has proposed to offer 30 lakh ordinary shares and certain shareholders would dilute up to 15 lakh shares in an underwritten public offering, said MakeMyTrip in a press release. Post-issue, the total outstanding shares of the company will increase to 4.13 crore shares from 3.78 crore.
Option to buy 6.75 lakh moreThe selling shareholders and another shareholder have also granted the underwriters a 30-day option to purchase up to an additional 6.75 lakh ordinary shares, it added.
Citigroup, JP Morgan and Deutsche Bank Securities are acting as joint book-running managers of the offer. Based on the trading price of $24.37 on Tuesday, the company’s offering may fetch up to $73 million. The offer price is yet to be decided.
The selling shareholders include three co-founders, including Deep Kalra, Group Chairman, Keyur Joshi, Group Chief Commercial Officer and Rajesh Magow, Chief Executive Officer for India.
After the sale of shares, Kalra’s holding will come down to 8.93 per cent from 10.46 per cent and that of Joshi and Magow to 0.35 per cent and 0.81 per cent. Three other executive officers — Mohit Gupta, Mohit Kabra and Amit Somani — are also offering a small portion of their holdings for sale. Besides the top executives, Hong Kong-based Sierra Ventures will bring down its holding to 28.65 per cent from 31.30 per cent.
This apart, SB Asia Investment Fund II LP (SAIF) has decided to offer 2.65 per cent from its 31.30 holding, in case the underwriters exercise their option to purchase 6.75 lakh shares.
During the first nine months of this fiscal, MakeMyTrip recorded a net loss of $18.2 million against a loss of $7.3 million in the corresponding period last year. Its revenue during this period was up 17 per cent at $80 million ($66 million). Last fiscal, it registered a net loss of $27.6 million.
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