Juniper Hotels might not have a very exciting start on February 28, even though the market conditions are good. The reasons for this could be the low interest from investors in its initial public offering (IPO) and the fact that the company is currently not making a profit. The hotel is owned by Saraf Group and Hyatt Hotels Corporation. Analysts believe that the listing price might be lower than the issue price of Rs 360 per share.
During the IPO from February 21-23, the public showed interest 2.08 times the offered shares, with institutional investors buying 2.96 times and retail investors buying 1.28 times their allotted shares. However, non-institutional investors only subscribed 0.85 times their portion.
The IPO raised Rs 1,800 crore, and all of it was for new shares. Out of this, Rs 1,500 crore will go towards paying off debts, and the rest will be used for general company purposes.