Juniper Hotels Ltd IPO- Review, Valuation, Opening Date & GMP

Juniper Hotels Limited IPO  - Complete Overview

Established in 1976, Juniper Hotels Limited is a luxury hotel company co-owned by Saraf Hotels, Juniper Investments, and Two Seas Holdings (a subsidiary of Hyatt Hotels Corporation). They manage a total of 7 hotels and serviced apartments with 1,836 rooms.

Juniper's properties are located in six key Indian cities: Mumbai, Delhi, Ahmedabad, Lucknow, Raipur, and Hampi. These include luxury, upper upscale, and upscale accommodations.

The hotel industry is expected to grow due to increased leisure travel, urbanisation, changing demographics, and evolving lifestyle trends. Juniper's revenue has seen a steady rise, reaching ₹6,668.54M in Fiscal 2023 from ₹1,663.51M in Fiscal 2021.

As of September 30, 2023, Juniper had 116 serviced apartments in Grand Hyatt Mumbai and 129 serviced apartments in Hyatt Delhi. They employ a total of 1,631 permanent staff.

 

Juniper Hotels Limited IPO Overview

Juniper Hotels Limited IPO date is slated to be open for subscription from February 21, 2024, to February 23, 2024. This  BSE NSE IPO follows a Book Built Issue IPO.

Juniper Hotels Limited IPO price is fixed at Rs.342 to Rs.360  per share. 

The total issue size of this IPO amounts to Rs. 1,800.00 CR. The company has reserved 75% for institutional investors, 15% for non-institutional investors, and 10% for retail investors. 

 

 

Juniper Hotels Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	21 February 2024
IPO Closing Date	23 February 2024
IPO Allotment Date	26 February 2024
Refund initiation	27 February 2024
IPO Listing Date	28 February 2024

 

Juniper Hotels Limited IPO Details:

IPO Opening & Closing Date	21 February to 23 February 2024
Face Value	Rs.10 per share
Issue Price	Rs.342 to Rs.360  per share
Lot Size	40 Shares
Price of 1 lot	Rs. 14,400
Total Issue Size	50,000,000 shares (aggregating up to Rs. 1,800.00 Cr)
Fresh issue	50,000,000 shares (aggregating up to Rs. 1,800.00 Cr)
Listing at	BSE NSE
Issue Type	Book Built Issue IPO
Registrar	Kfin Technologies Limited

Juniper Hotels Limited IPO Lot Details

Application	Lot	Shares	Amount
Minimum Lot Investment (Retail)	1 lot	40	Rs.14,400
Maximum Lot Investment (Retail)	13 lot	520	Rs.1,87,200
Minimum Lot Investment (HNI)	14 lot	560	Rs.2,01,600
Maximum Lot Investment (HNI)	69 lot	2,760	Rs.9,93,600

 

Juniper Hotels Limited IPO Reservation

QIB Shares Offered	Maximum 75%
Retail Shares Offered	Minimum 10%
Other Shares Offered	Minimum 15%

 

 

Company Financial

Company financials indicate overall growth with a slight increase in borrowings.

(Amount in Crore)

Period	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Total Assets	3,837.83	3,020.27	3,069.86
Total Revenue	337.43	717.29	343.76
PAT	-26.50	-1.50	-188.03
Net worth	859.67	354.51	356.37
Reserve & Surplus	687.17	210.81	212.67
Total Borrowings	2,252.75	2,045.61	2,121.81

 

Break up of Revenue from Operations based on our Offerings:

Revenue breakdown by offerings shows changes compared to previous years.

(in % age)

Particulars	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Room revenue	44.57%	44.88%	38.26%
Serviced Apartments Revenue	12.98%	12.34%	18.20%
F&B Revenue	31.53%	30.45%	29.73%
Lease rentals	4.80%	5.09%	7.99%
Other Hospitality Services	6.12%	7.24%	5.82%
Total	100.00%	100.00%	100.00%

 

Break up of Revenue from Operations based on Portfolio of Hotels and Serviced Apartments:

Revenue from operations segmented by hotel portfolio remained consistent with previous years.

(in % age)

Particulars	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Grand Hyatt Mumbai Hotel and Residences	52.24%	54.81%	52.74%
Andaz Delhi and Hyatt Delhi Residences	38.24%	35.32%	35.81%
Hyatt Regency Ahmedabad	9.51%	9.87%	11.45%
Total	100.00%	100.00%	100.00%

 

Revenue by Operations:

Juniper Hotels Limited's revenue from operations significantly increased in FY23 compared to FY22, with notable growth in other income.

(Amount in Crore)

Particulars	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Revenue from operations	3,36.11	6,66.85	3,08.68
Other Income	1.31	50.43	35.06
Total Revenue	3,37.43	7,17.28	3,43.75

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Paying off or partially paying off existing loans taken by the Company and its recent acquisitions, CHPL and CHHPL.

• Utilising funds for general corporate needs.

 

Promoters and Management of Juniper Hotels Limited IPO

1. Arun Kumar Saraf.

2. Saraf Hotels Limited.

3. Two Seas Holdings Limited

4. Juniper Investments Limited.

Pre-issue Promoter Shareholding	100.00%
Post-issue Promoter Shareholding

 

 

Juniper Hotels Limited IPO Lead Managers

•   Jm Financial Limited

• Clsa India Private Limited

• ICICI Securities Limited

 

Peers of Juniper Hotels Limited IPO

Juniper Hotels Limited IPO's EPS shows better performance compared to its peers.

Name of the Company	Face Value (Rs. per Share)	P/ E	EPS (Basic) (Rs.)
Juniper Hotels Limited	10		-0.10
Chalet Hotels Ltd	10	84.37	8.94
Lemon Tree Hotels Ltd	10	95.52	1.45
The Indian Hotels Company Limited	1	66.78	7.06
Eih Ltd.	2	58.71	5.03

 

Evaluation

The IPO is priced within the range of Rs. 342 to Rs.360  per share.

Evaluation of P/E Ratio:

- Taking into account the weighted EPS of Rs 6.72 for the last three years, the P/E ratio amounts to 53.57x.

Comparative Analysis with Listed Peers:

- Lemon Tree Hotels Ltd has a P/E ratio of 95.52x (the highest).

- Eih Ltd. has a P/E ratio of 58.71x (the lowest).

- The industry's average P/E is 76.34x.

As a result, the IPO price range, with a P/E ratio of  53.57x seems undervalued in comparison to the industry average of 76.34x..

 

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

 

IPO's Strengths

- Investing in organic and inorganic growth opportunities, including acquisitions.

- Strengthening marketing capabilities and brand building efforts.

- Supporting working capital needs.

- Addressing general corporate needs.

- Any other purposes approved by the Board or committee, complying with the Companies Act.

 

IPO's Weaknesses

- Past losses incurred by the company and its subsidiaries.

- Substantial indebtedness requiring significant cash flows to service.

- Restrictions and conditions under financing agreements limiting operational freedom.

- Risks associated with breach of financing terms or inability to meet obligations.

- Delays in loan repayment and strategic debt restructuring at CHPL, a wholly owned subsidiary.

- Dependence on revenue from three hotels/serviced apartments in Mumbai and New Delhi, which could be adversely affected by regional developments.

 

 

IPO GMP Today

The GMP of Juniper Hotels Limited IPO has not started yet.

 

Conclusion

The Juniper Hotels Limited IPO presents an opportunity for investors to invest into the hospitality sector, which is assured for growth given the evolving lifestyle trends. With a solid portfolio of luxury, upper upscale, and upscale accommodations across key Indian cities, Juniper Hotels has demonstrated steady revenue growth over the years.

However, it's crucial to consider the company's financials, past losses, and indebtedness, along with potential risks associated with regional developments and dependence on revenue from specific locations. Investors should conduct thorough due diligence before making investment decisions.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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