MakeMyTrip to raise $62 Million via fresh issue
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MakeMyTrip to raise $62 Million via fresh issue

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Gurgaon: MakeMyTrip, Gurgaon-based online travel service provider, plans to raise up to $62 million through fresh public issue of shares. Deep Kalra, CEO, founded the company in the year 2000, which began its journey in the U.S.-India travel market. Some management executives including Deep Kalra and a few private equity investors, such as Helion Venture and SAIF Partners, are part-selling their stake worth around $109 million, reports VCCircle.

The company aims to offer a range of best-value products and services along with progressive technology and customer support. The new issue will enable the company to double its market value within one year. The company was valued at around $450 million at the IPO and the post-money valuation, after the proposed issue at the current market price, will be around $930 million-making it one of the top 250 most valued Indian firms listed on any stock exchange. In its prospectus filed with the United States' Securities and Exchange Commission, the firm indicated that the issue could comprise of 69 million shares, including over-allotment portion, for a maximum price of $26.22 per share, which may total around $180 million.

The firm will sell 16 million fresh shares in addition to the offer for sale by existing shareholders for 44 million shares. Morgan Stanley and Company International, Deutsche Bank Securities, Pacific Crest Securities and Oppenheimer and Company have underwritten the issue to the extent of 6 million shares. These four companies are also managing the issue.

The fund will be used to expand operations by acquiring or investing in strategic businesses or assets that complement its service and product offerings. It also plans to invest in technology enhancements, increase working capital and utilize the money for other general corporate purposes. The firm has not yet entered into any agreement or commitment with respect to any material acquisition or investment. The details of the selling shareholders are still undisclosed. Kalra will sack approximately $12.3 million and thereby reduce his holding to 9.43 percent from 11.3 percent. In the first issue, Kalra had sacked $5.16 million. SAIF will get $75 million, remaining the largest shareholder with over 31 percent stake valued at $362 million, while Helion will encash $17.5 million in the proposed public issue. Sierra Ventures and Tiger Global are among the shareholders who are not selling shares in this round of public issue.

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