Yatra Online Lists At 10% Discount As Shares Make Lukewarm Debut Today

Yatra Online Limited shares made a lukewarm debut on the bourses on September 28, 2023 as the stock was listed at a 10.21% discount of Rs 127.50 on NSE as against its issue price of Rs 142 apiece. Earlier, Yatra Online began its trading session on BSE at Rs 130 apiece, a discount of over 8% against the issue price. Current market price of Yatra Online stock on BSE is Rs 135.80 apiece and shares are trading at Rs 135.25 apiece on NSE at 10:57 am.

It is worth noting here that Yatra Online did not choose T +3 listing and opted for traditional T +6 listing.

Shivani Nyati, Head of Wealth, Swastika Investmart stated, "The YOL's shares witnessed a negative listing. This is likely due to the company's high P/E valuation, its reliance on the airline ticketing business, and the competitive nature of the travel industry. Overall, YOL is a risky investment, and investors who receive an allotment of this IPO should consider exiting their position."

Earlier, the initial public offering of Yatra Online opened for bidding between Sept 15 to Sept 20. The travel agency company offered its shares in the fixed price band of Rs 135-142 apiece with a lot size of a minimum 105 shares its multiples thereafter. Yatra Online managed to raise nearly 775 crore, including a fresh share sale of Rs 602 crore.

Yatra Online seeks to utilise the net proceeds from the IPO for several purposes, that may include strategic investments, acquisitions, corporate needs, customer acquisition, technology development, and organic growth initiatives, among others.

But, the IPO of Yatra Online fetched tepid response at Dalal Street because the issue was overall subscribed 1.66 times only.

Meanwhile, portion kept aside for retail investors was booked 2.19 times and the portion for qualified institutional bidders (QIBs) was booked 2.10 times. Meanwhile, allocation for non-institutional bidders was booked merely 43%.

It came into existence in 2005. Yatra Online Limited offers online travel agency services. It provides comprehensive travel-related services which include domestic and international air ticketing, hotel bookings, homestays, holiday packages, bus ticketing, rail ticketing, activities, and ancillary services, among others.

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