The shares of Juniper Hotels listed at a premium of 1.4% on the exchanges. The stock debuted at Rs 365 on NSE against an issue price of Rs 360. Meanwhile, the stock debuted at Rs 361.2, up 0.3% on BSE.
After the listing, analysts advised a cautious approach for investors.
Shivani Nyati, Head of Wealth at Swastika Investmart, said “Juniper Hotels, the high-end hotel developer known for its Hyatt-affiliated chains, witnessed a flat debut on the stock market, listing at Rs 365 per share—a mere 1.39% premium over its issue price of Rs 360. This performance aligns with pre-listing expectations, which were tempered by muted investor enthusiasm and a lack of significant gray market premium (GMP).”
“The saturated hospitality sector raises concerns about Juniper’s ability to maintain its market share amidst fierce competition. While Juniper boasts a well-established presence, its recent financial performance has not been particularly strong, potentially deterring investors. Thus, considering all these factors, a cautious approach is crucial for investors,” Nyati said.
Meanwhile, Prashanth Tapse, Senior VP – Research at Mehta Equities, said, “The hotel sector is expected to outperform in the coming years. Hence allotted investors can hold and add more at lower levels which can reward them in the medium to long term.”The IPO barely managed to scrape through on the final day with an overall subscription of 2 times at close.The company proposes to use the net proceeds of Rs 1,500 crore towards repayment, prepayment, 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 and Two Seas Holdings, an affiliate of the prominent global hospitality entity, Hyatt Hotels Corp.
It functions as a luxury hotel development and ownership enterprise and owns 20% of the total 1836 Hyatt-affiliated keys in India as of June 2023. The company manages a diverse portfolio consisting of seven hotels and serviced apartments.
The hotels and serviced apartments span across various categories including luxury, upper upscale, and upscale, located across six strategic cities in Mumbai, Delhi, Ahmedabad, Lucknow, Raipur, and Hampi. Notably, the Grand Hyatt Mumbai Hotel and Residences holds the distinction of being the largest hotel in India.
For the fiscal year 2023, revenue from operations increased by 116% to Rs 667 crore against Rs 309 crore a year ago. Net loss narrowed to Rs 1.5 crore in fiscal 2023 over Rs 188.03 crore in fiscal 2022.
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