Juniper Hotels Surged

"After a lackluster debut on February 28, Juniper Hotels’ stock surged by over 11 percent. It initially opened at Rs 365 on the NSE and Rs 361.2 on the BSE, just above the IPO price of Rs 360. However, within a short span, it hit the upper circuit, rising by 11.5 percent to Rs 401.5.

Given the company’s business model heavily reliant on assets, increasing debt levels, and continuous losses, analysts suggest investors who received Juniper Hotels’ allotment to consider booking profits on the listing day. Despite the negative trends in financial performance, some experts point out that Hyatt, being a globally recognized brand, could be a significant factor. They advise allotted investors to hold and potentially add more at lower levels, expecting rewards in the medium to long term.

The public issue, amounting to Rs 1,800 crore, was subscribed 2.08 times during the period from February 21 to 23. Although Juniper Hotels has faced losses historically, its FY23 losses reduced to Rs 1.5 crore from the previous year’s loss of Rs 188 crore. The revenue, however, more than doubled, reaching Rs 666.85 crore."