Juniper Hotels Ltd, which runs the “Hyatt” brand, has filed a draft red herring prospectus with regulator SEBI to raise Rs 1,800 crore. The company’s maiden public issue will be an entirely fresh issue of equity shares with no Offer-for-Sale (OFS) component.

The issue is being made through the book-building process, wherein not less than 75 per cent of the issue will be available for allocation on a proportionate basis to qualified institutional buyers, not more than 15 per cent for allocation to non-institutional investors, and not more than 10 per cent of the issue will be available for allocation to retail individual investors.

Pre-IPO placement

The company, in consultation with lead bankers to the issue, may consider a further issue of equity shares on private placement for cash consideration aggregating up to Rs 350 crore. If such a placement is completed, the fresh issue size will be reduced.

Juniper Hotel proposes to use the net proceeds of Rs 1,500 crore towards repayment, pre-payment, or redemption, in full or in part, of certain outstanding borrowings (including payment of the interest accrued thereon) availed by the company and its subsidiaries, and for general corporate purposes.

Juniper Hotels is co-owned by Saraf Hotels Ltd and Two Seas Holdings Ltd, an affiliate of the prominent global hospitality entity, Hyatt Hotels Corporation. 

Their hotels and serviced apartments span across categories, including luxury, upper upscale, and upscale, in Mumbai, Delhi, Ahmedabad, Lucknow and Raipur. 

JM Financial Ltd, CLSA India Private Ltd, and ICICI Securities Ltd are the book-running lead managers, and KFin Technologies Ltd is the registrar of the offer. The equity shares are proposed to be listed on the BSE and NSE.

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