Juniper Hotels quotes Rs 365 at an issue price of Rs 360 | Markets News – Business Standard

Juniper Hotels made a quiet debut on the stock exchanges on Wednesday, trading at Rs 365 – a premium of 1.4 per cent over its issue price of Rs 360 per share on the National Stock Exchange (NSE).

The hotel and resort company’s shares opened at Rs 361.20 on the BSE. Post-listing, the stock rose to Rs 383.85, almost 7 percent higher than the issue price. At 10:03 am, the company was trading at Rs 381.05, a premium of 6 percent over the issue price on the BSE. A total of 6 million shares have changed hands in trading on the NSE and BSE so far.

Juniper Hotels is a strategic partnership between the Saraf Group, a hotel developer, and Hyatt, a leading international hospitality company. The issue was subscribed to 2.2 times. The non-institutional investors portion was subscribed 0.89 times, the Retail Individual Investors (RIIs) quota was subscribed 1.31 times and the Qualified Institutional Buyers (QIBs) category was subscribed 3.11 times.

Juniper Hotels is a #1 luxury hotel development and ownership company. of the room inventory of Hyatt-affiliated hotel rooms in India (19.6 percent). Looking ahead, the company has a robust expansion plan in place with a focus on increasing average room rates (ARRs), which will be done through improving their existing assets and developing new opportunities (commercial space development).

Furthermore, the funds raised through the issue will significantly reduce the company’s debt burden, which could make the company profitable in the medium term.

“Apart from this, growth in demand for hotel rooms is expected to outpace growth in hotel room supply. Therefore, the robust expansion plan, better profitability on the back of lower debt and positive industry factors make this IPO an attractive proposition,” say analysts at This reports Indsec Securities and Finance.

The company plans to expand its Grand Hyatt Mumbai hotel with an additional 293 rooms and 24 serviced apartments within the next three years (by FY27). This expansion will contribute to the company’s revenue growth. Grand Hyatt Mumbai’s MICE (Meetings, Incentives, Conferences, and Exhibitions) area will also be increased from 50,000 sq ft to 100,000 sq ft, which is expected to be operational from H1FY25, brokerage firm SBI Securities said.

First print: February 28, 2024 | 10:19 am IST