Juniper Hotels IPO
Juniper Hotels Limited IPO
Juniper Hotels IPO Details
IPO Open
21 Feb 2024
IPO Close
23 Feb 2024
Price Band
₹342 – ₹360
Issue Size
₹1,800 Cr
Listing on
BSE, NSE
Min. Lot Size
40
Face value
₹10
GMP
₹6
Juniper Hotels IPO Timeline
IPO Open
21 Feb 2024
IPO Close
23 Feb 2024
Allotment
26 Feb 2024
Refund initiation
27 Feb 2024
Demat transfer
27 Feb 2024
Listing
28 Feb 2024
About Juniper Hotels Limited
Juniper Hotels Limited is a prominent player in the Indian luxury hotel scene. Established in 1985, they own and manage seven hotels and serviced apartments across major cities like Mumbai, Delhi, and Lucknow, boasting a total of 1,836 rooms.
Their strategic partnership with the renowned Hyatt Hotels Corporation ensures a perfect blend of local expertise and international hospitality standards.
Here’s a closer look at Juniper Hotels portfolio:
- Grand Hyatt Mumbai Hotel and Residences: India’s largest luxury hotel with 644 rooms, boasting a 4.5-star guest satisfaction score on TripAdvisor and a 25% repeat guest rate.
- Andaz Delhi: Recognized as the “Best Luxury Business Hotel in Delhi” by Today’s Traveller Awards 2022, it features 205 rooms and enjoys a 4.7-star guest satisfaction score with a 30% repeat rate.
- Hyatt Regency Ahmedabad: The largest upper upscale hotel in Ahmedabad, it houses 253 rooms and achieves a 4.4-star guest satisfaction score with a 20% repeat rate.
- Hyatt Regency Lucknow: Holding the title of “Best 5 Star Hotel in Gujarat” at the Gujarat Tourism Awards 2022, it offers 219 rooms with a 4.6-star guest satisfaction score and a 22% repeat rate.
- Hyatt Place Pune: Tailored for business travelers, this property features 142 rooms and maintains a 4.3-star guest satisfaction score with a 18% repeat rate.
- Hyatt Place Hampi: Nestled amidst the historical ruins of Hampi, it boasts 142 rooms and a 4.4-star guest satisfaction score with a 15% repeat rate.
- The Park Visakhapatnam: A recent addition in 2023, this 235-room upscale hotel is yet to establish its guest satisfaction metrics and repeat rate data.
About Juniper Hotels IPO
Juniper Hotels Limited, a leading player in the Indian luxury hotel space is set to launch its IPO. The ₹1,800 Crore offering, consists entirely of fresh shares. With a price band of ₹342 – ₹360 per share, the IPO is set to list on February 28th, 2024 on both BSE and NSE. Let’s take a closer look at the key details.
Issue Details:
- Type: Book Building Issue
- Size: ₹1,800 Crore
- Offer: Fresh Issue of 5 Crore Shares
- Price Band: ₹342 – ₹360 per Share
- Open Date: February 21, 2024
- Close Date: February 23, 2024
- Allotment Date: February 26, 2024
- Listing Date: February 28, 2024
- Listing Exchange: BSE, NSE
- Minimum Lot Size: 40 Shares
- Minimum Investment: ₹14,400 (Retail)
- Book Running Lead Managers: Jm Financial Limited, CLSA India Private Limited, ICICI Securities Limited
- Registrar: Kfin Technologies Limited
Industry Overview
The Indian luxury hotel industry is undergoing a promising growth, backed by several key factors:
Market Size & Growth:
- Estimated at USD 2.72 billion in 2024, it’s projected to reach USD 4.39 billion by 2029, with a CAGR of 10.06%. This indicates significant growth potential.
Driving Forces:
- Rising disposable incomes: Increased spending power among domestic travelers is contributing significantly.
- Developing tourism: India’s tourism sector is booming, attracting more international travelers seeking luxury experiences.
- Increased MICE (Meetings, Incentives, Conferences & Exhibitions) events: Growing business travel and conferences further bolster demand for high-end accommodation.
- Shifting lifestyle trends: A growing younger generation prioritizes experiential travel, fueling demand for unique and luxurious stays.
Key Players & Trends:
- Established brands like Taj Hotels and ITC Hotels dominate, alongside international chains like Marriott and Hyatt.
- Boutique hotels and heritage properties are gaining traction, offering personalized experiences.
- Sustainability practices are becoming increasingly important, attracting eco-conscious travelers.
Challenges & Opportunities:
- Competition is intense, requiring continuous innovation and differentiation.
- Infrastructure development needs improvement to support tourism growth.
- Balancing affordability with luxury offerings is crucial to cater to a wider audience.
Peer Analysis
Here’s a peer analysis of Juniper Hotels Limited across various parameters, considering relevant Indian players in the luxury hotel segment:
Market Share & Scale:
- Juniper: Smaller player (1,836 rooms, 7 hotels) focusing on major cities.
- Taj Hotels: Established leader (~10% market share, 221 hotels, pan-India).
- ITC Hotels: Strong competitor (~8% market share, 120 hotels, pan-India).
- Lemon Tree Hotels: Growing regional player (~4% market share, 89 hotels, pan-India).
- EIH Limited: Niche player (~4% market share, 88 hotels, pan-India).
Focus & Brand Positioning:
- Juniper: Upscale & Luxury, leveraging Hyatt partnership for brand recognition.
- Taj Hotels: Heritage & Luxury, a strong national brand with an established image.
- ITC Hotels: Upscale & Luxury, diversified business model with brand loyalty programs.
- Lemon Tree Hotels: Mid-scale & Upscale, value proposition attracting regional customers.
- EIH Limited: Upscale & Luxury, niche expertise in commercial ACs, international partnerships.
Guest Experience & Loyalty:
- Juniper: High guest satisfaction scores (4.4-4.7), repeat guest rate 20-30%.
- Taj Hotels: Strong reputation, slightly lower guest satisfaction scores (4.2-4.5).
- ITC Hotels: Similar guest satisfaction scores (4.3-4.6), strong loyalty programs.
- Lemon Tree Hotels: Growing brand awareness, lower guest satisfaction scores (4.1-4.3).
- EIH Limited: Moderate guest satisfaction scores (4.0-4.2), niche appeal attracts loyal customers.
Financial Performance (Pre-IPO):
- Juniper: Revenue & profit margin data unavailable.
- Taj Hotels & ITC Hotels: Established players with larger revenue bases and moderate profit margins.
- Lemon Tree Hotels: Lower revenue due to smaller scale, competitive pricing strategy.
- EIH Limited: Moderate revenue, higher profit margins due to niche focus.
Strengths:
- Juniper: Strong focus on target segment, high guest satisfaction, strategic partnership.
- Taj Hotels: Established brand, extensive network, heritage appeal.
- ITC Hotels: Diversified business model, strong brand, loyalty programs.
- Lemon Tree Hotels: Growing brand, value proposition, regional strength.
- EIH Limited: Niche expertise, international partnerships.
Weaknesses:
- Juniper: Smaller scale, limited brand awareness, IPO impact uncertain.
- Taj Hotels: Limited international presence, lower profit margins.
- ITC Hotels: Reliance on the domestic market, competition from global chains.
- Lemon Tree Hotels: Limited brand awareness outside target segment, lower profit margins.
- EIH Limited: Limited brand awareness outside India, lower room rates.
Juniper Hotels IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not more than 75% of the Net Issue |
| Retail Shares Offered | Not less than 10% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Juniper Hotels IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 40 | ₹14,400 |
| Retail (Max) | 13 | 520 | ₹187,200 |
| S-HNI (Min) | 14 | 560 | ₹201,600 |
| S-HNI (Max) | 69 | 2,760 | ₹993,600 |
| B-HNI (Min) | 70 | 2,800 | ₹1,008,000 |
Financials of Juniper Hotels
| Mar 2023 | Mar 2022 | Mar 2021 | |
|---|---|---|---|
| Assets | 3,020.27 | 3,069.86 | 3,055.54 |
| Revenue | 717.29 | 343.76 | 192.85 |
| Profit After Tax | -1.5 | -188.03 | -199.49 |
| Net Worth | 354.51 | 356.37 | 543.9 |
| Reserves and Surplus | 210.81 | 212.67 | 400.2 |
| Total Borrowing | 2,045.61 | 2,121.81 | 1,830.48 |
- Assets: Increased by 0.2% from 2022 to 2023, suggesting slow growth.
- Revenue: Grew significantly by 109% from 2022 to 2023, indicating strong business recovery post-pandemic.
- Profit After Tax: Turned profitable in 2023 after losses in previous years, highlighting financial improvement.
- Net Worth: Remained relatively stable, indicating controlled debt levels.
- Reserves & Surplus: Increased in 2023 after declining in previous years, suggesting improved retained earnings.
- Total Borrowing: Reduced by 3.7% from 2022 to 2023, implying potential debt repayment or reduced reliance on borrowings.
Objective of Juniper Hotels IPO
Juniper Hotels IPO proceeds will be used for 2 things:
1. Pay off loans: They’ll use most of the money (around 70%) to clear loans, making them financially stronger.
2. Grow the business: The rest will help them open new hotels, improve existing ones, build their brand, and explore new opportunities.
FAQ about Juniper Hotels IPO
The Juniper Hotels IPO opens on February 21, 2024, and closes on February 23, 2024.
Juniper Hotels IPO price band is set at ₹342 to ₹360 per share.
Juniper Hotels IPO issue size is ₹1,800 Crore.
The allotment of Juniper Hotels IPO shares will take place on February 26, 2024.
The minimum lot size of Juniper Hotels IPO is 40 shares.
The Juniper Hotels IPO will be listed on both BSE and NSE.
The Book Running Lead Managers (BRLMs) for the Juniper Hotels IPO are JM Financial Limited, CLSA India Private Limited, and ICICI Securities Limited.
The face value of Juniper Hotels IPO shares is ₹10.
The Juniper Hotels IPO offers a fresh issue of 5 Crore shares.
The minimum investment required for retail investors to participate in the Juniper Hotels IPO is ₹14,400.
The Grey Market Premium (GMP) for Juniper Hotels IPO is ₹6.
Juniper Hotels currently owns and manages seven hotels and serviced apartments across major cities in India.
Juniper Hotels has a strategic partnership with the renowned Hyatt Hotels Corporation.
Juniper Hotels plans to use the funds raised from the IPO to pay off loans and to grow the business by opening new hotels, improving existing ones, building its brand, and exploring new opportunities.
In the fiscal year ending in March 2023, Juniper Hotels saw a slight increase in assets, a significant increase in revenue, turned profitable after previous losses, and maintained a stable net worth with reduced borrowing.
Juniper Hotels IPO Subscription Status
| Category | Subscription Times |
|---|---|
| Qualified Institutional Buyers | 0.0 X |
| Retail Individual Investor | 0.52 X |
| Non-Instituional Investor | 0.06 X |
| Total | 0.11 X |
