Indian online travel portal MakeMyTrip plans to raise about US$73 million through a follow-on public offer of equity shares, reports The Hindu Business Line.
It will utilise the proceeds to expand services to new geographic markets and pursue selective strategic partnerships and acquisitions. The company plans to expand its hotel and packages business and tap new technology platform to widen its reach. It will also increase its product portfolio to enhance cross-selling opportunities, further said the report.
The company has proposed to offer three million ordinary shares, and certain shareholders would dilute up to 1.5 million shares in an underwritten public offering, said MakeMyTrip in a press release.
Post-issue, the total outstanding shares of the company will increase to 41.3 million shares from 37.8 million shares.
Citigroup, JP Morgan and Deutsche Bank Securities are acting as joint book-running managers of the offer. Based on the trading price of US$24.37 on Tuesday (March 11), the company’s offering may fetch up to US$73 million. The offer price is yet to be decided, reported HBL.
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The selling shareholders include Deep Kalra, Group Chairman; Keyur Joshi, Group Chief Commercial Officer; and Rajesh Magow, Chief Executive Officer for India.
After the sale of shares, Kalra’s holding will come down to 8.93 per cent from 10.46 per cent and that of Joshi and Magow to 0.35 per cent and 0.81 per cent respectively, said the aforementioned report.