READ THE FULL YTRA RESEARCH REPORT
This morning Yatra Online (NASDAQ:YTRA) announced it has filed a red herring with Securities and Exchange Board of India to list on the two major India stock exchanges via an IPO there. The plan is to sell $100 million ± 20% of primary shares in Yatra, plus another a secondary offering of up to 8,896,998 equity shares by THCL Travel Holding Cyprus Limited. THCL is a subsidiary of Yatra Online. This totals to approximately 8% of the shares outstanding of Yatra Online Limited. The funds raised by the subsidiary could be dividended back to the parent. The deal is not expected to close until the September quarter.
The benefits of this IPO include:
• A potentially higher valuation in India than in the US due to comparable valuations and the ability for Indian retail investors to invest in a well-known consumer name which was forbidden with only a NASDAQ listing.
• The addition of more research coverage especially by Indian investment firms
• Cash with which to pursue acquisitions and fuel growth
We expect the red herring to available to the public in the next day or two and that the company will be reporting the December quarter shortly although a date has not yet been announced.
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