Juniper Hotels Limited IPO

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As India’s leading luxury hotel development and ownership entity, they hold the distinction of being the largest owner of “Hyatt” affiliated hotels in terms of the number of keys, as of September 30, 2023. The portfolio comprises seven prestigious hotels and serviced apartments, totaling 1,836 keys. This achievement is anchored by their longstanding and strategic partnership with the globally renowned Hyatt Hotels Corporation (NYSE: H), a relationship that spans over four decades and underscores the unique position in the Indian hospitality sector.

Strategic Partnership and Market Position

The affiliation with Hyatt is not just symbolic but is underscored by a strategic investment from Hyatt, making them the only hotel development company in India to enjoy such a privilege. This partnership enables them to leverage Hyatt’s global brand recognition, operational expertise, and the expansive World of Hyatt loyalty program, which boasts approximately 42 million members. Their significant market presence is highlighted by owning 19.6% of Hyatt group affiliated hotel rooms and apartments in India, a testament to their expansive footprint in the hospitality landscape.

Portfolio and Geographic Diversification

The diverse portfolio spans across luxury, upper upscale, and upscale segments, strategically located in key urban and emerging business destinations as well as tourist hotspots across India. This includes landmark properties in Mumbai, Delhi, Ahmedabad, Lucknow, Raipur, and Hampi. The flagship properties, such as the Grand Hyatt Mumbai Hotel and Residences, stand as the largest luxury hotel in India, while their Hyatt Regency properties in Lucknow and Ahmedabad are leaders in their respective upper upscale markets.

Future Growth Strategy

Looking ahead, Their strategy is to further solidify their position as the premier luxury hotel development and ownership entity in India. This includes expanding their portfolio of luxury and upscale hotels and serviced apartments through strategic acquisitions and developments. The goal is to enhance their flagship status within the Saraf Group by consolidating interests and seizing new opportunities in the hospitality sector, thereby reinforcing their leadership in India’s luxury hospitality market.

Conclusion

With a rich heritage of partnership with Hyatt Hotels Corporation and an unparalleled portfolio of luxury hospitality assets, they are strategically positioned for continued growth and leadership in the Indian hospitality industry. Their focus on strategic site development, operational excellence, and guest experience, coupled with their ambitious expansion strategy, sets them apart as a premier hotel development and ownership company in India.

Objects of the Juniper Hotels Limited IPO:

The net proceeds of the Issue, i.e., gross proceeds of the Issue less the Issue related expenses are proposed to be utilised in the following manner: i. Repayment/ prepayment/ redemption, in full or in part, of certain outstanding borrowings availed by the Company and its recent acquisitions, namely CHPL and CHHPL; and ii. General corporate purposes.
DRHP of Juniper Hotels Limited IPO
RHP of Juniper Hotels Limited IPO

Juniper Hotels Limited IPO Details:

Open Date: Feb 21 2024
Close Date: Feb 23 2024
Total Shares: 50,000,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 1,800.00 Cr.
Lot Size: 40 Shares
Issue Price: ₹ 342 - 360 Per Equity Share
Listing At: NSE,BSE
Listing Date: Feb 28 2024

Promoters And Management:

Arun Kumar Saraf is the Chairman and Managing Director of the Company. He is also one of the Promoters of the Company. He has been associated with the Company since 1998. He holds a bachelor’s degree of arts with a major in business economics from the College of Letters and Science, University of California, Los Angeles, USA. Namita Saraf is a Non-Executive Director of the Company. She has completed her higher secondary examination from West Bengal Council of Higher Secondary Education. She currently serves as the head of the Saraf Foundation for Himalayan Tradition and Culture, Kathmandu, Nepal. David Peters is a Non-Executive Director of the Company. He holds a bachelor’s degree in arts from the College of Arts and Science, Vanderbilt University and a degree of juris doctor from the College of Law, University of Iowa. He currently serves as the senior vice president and associate general counsel (transactions and asset management) at Hyatt Hotels Corporation. He was previously associated with Hyatt International (Europe Africa Middle East) LLC as vice president – legal (Europe, Africa, Middle East (EAME) & South West Asia (SWA)) and Hyatt Corporation as corporate counsel.

Financials of Juniper Hotels Limited IPO:

A. Balance Sheet
Particular (In Million) Mar-21 Mar-22 Mar-23
Equity Share Capital 1,437 1,437 1,437
Reserves 4,002 2,127 2,108
Borrowings 18,305 21,218 20,456
Trade Payables 1,372 676 784
Other Liabilities 5,439 5,241 5,417
Total Liabilities 25,116 27,135 26,658
Net Block 24,682 24,032 23,226
Capital Work in Progress 0 442 488
Investments 9 9 9
Other Assets 5,179 5,362 5,655
Total NC Assets 29,871 29,845 29,377
Receivables 239 296 448
Inventory 61 68 76
Cash & Bank 222 149 98
Other Assets 162 341 204
Face value 10 10 10
B. Profit & Loss Statement
Particular (In Million) Mar-21 Mar-22 Mar-23
Sales 1,664 3,087 6,669
Raw Material Cost 143 271 504
Employee Cost 581 756 989
Other Expenses 982 1,396 2,456
Other Income 265 351 504
Depreciation 1,054 999 815
EBITDA 222 1,015 3,224
EBITDA Margin 13.35% 32.87% 48.34%
Interest 1,862 2,156 2,664
Profit before tax -2,694 -2,141 -255
Tax -699 -261 -240
Net profit -1,995 -1,880 -15
NPM (%) -103.44% -54.70% -0.21%
C. Cash Flow Statement
Particular (In Million) Mar-21 Mar-22 Mar-23
Cash From Operating Activity
Profit From Operation 87 983 2,855
Receivable 71 -57 -173
Inventory 27 -7 -8
Payable 316 -678 176
Other WC Items -243 -534 108
Working Capital Changes 171 -1,276 103
Direct Taxes 278 -71 -94
Net Cash Inflow from Operating Activity 536 -364 2,864
Cash from Investing Activity
Fixed assets purchased -85 -561 -297
Fixed assets sold 0.03 2 474
Investments purchased 0 0 -1,175
Investment sold 0 0.4 1,175
Other investing items 7 -73 100
Net cash inflow from investing activities -78 -631 277
Cash from Financing Activity
Proceeds from borrowings 1,373 7,391 460
Repayment of borrowings -179 -4,377 -1,497
Intrest paid fin -1,580 -1,867 -1,923
Financial liabilities -29 -245 -148
Net Cash Flow 43 -93 33

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Juniper Hotels Limited 667 -1 -0.06 -5350.8 360 8,010
Chalet Hotels Limited 1128 183 8.94 71.3 840 17,240
Lemon Tree Hotels Limited 875 141 1.45 87.0 138 10,917
The Indian Hotels Company Limited 5,810 1,053 7.06 64.2 528 75,065
EIH Limited 2,019 329 5.03 46.7 409 25,597
* All the data is as per FY23.

Recommendation on Juniper Hotels Limited IPO:

Review and Recommendation of Juniper Hotels by team IZ is 4/10.

Lead Manager of Juniper Hotels Limited IPO:

  1. CLSA India Private Limited
  2. ICICI Securities Limited
  3. JM Financial Consultants Private Limited

Registrar of Juniper Hotels Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Juniper Hotels Limited Off Western Express Highway Santacruz East, Mumbai 400 055, Phone: + 91 22 6676 1000 Email: complianceofficer@juniperhotels.com Website: http://www.juniperhotels.com/

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