Juniper Hotels IPO subscribed 16% so far on Day 2. Check GMP and other details
Juniper Hotels continued to see muted response from investors with an overall subscription of just 16% so far on Thursday, the second day of the bidding process. The issue closes on February 23.
The category reserved for retail investors was subscribed the most at 74%, while that of NIIs was booked at 9%. There were no bids yet in the QIB part.
Ahead of the IPO, the company raised Rs 810 crore from anchor investors where foreign and domestic institutions including Fidelity, Kotak Mahindra MF, Government Pension Fund (Norges) among others participated.
Juniper Hotels IPO review
Despite a boom in hospitality and tourism over the past few years, the continuous loss-making status and asset-heavy business model weighed on analysts' views, who were mixed on the IPO.
«Considering the asset-heavy business model of the company, rising debt levels and continued loss-making status, we would recommend an Avoid rating for the issue. We would reconsider the company for further evaluation following sustained financial performance over the next few quarters,» said Stoxbox.
Meanwhile, Ventura Securities gave a subscribe recommendation saying the company’s strong and well recognized parentage and robust asset management capabilities with a focus on enhancing operating efficiency and profitability is expected to drive growth.
Juniper Hotels IPO price band
Juniper Hotels has fixed a price band of Rs 342-360 per share for its maiden public offer. Investors can bid for 40 shares in one lot and in multiples thereafter.
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