IPO listed on 28 Sep'23
Yatra Online Ltd
Minimum Investment
₹ 14,910 / 105 shares
Grey market premium
₹ 0
Issue price
₹ 142
Listing price
₹ 128
Listing gains
-14.5 (-10%)
Listing on
Sep 28, 2023
Our Verdict:
Avoid
- Over the past few years, Yatra's financial health has been unstable. It incurred losses in FY21 and FY22 and only posted a modest profit in FY23. Additionally, the company has experienced a significant employee churn rate, and its profit margins raise concerns.
- On the valuation front, the issue commands a P/E multiple of 290x at the upper range of the price band. The only comparable listed company, Easy Trip Planners, has a P/E multiple of 56x. This makes the IPO appear quite ambitious in its pricing, especially when considering the company's financial track record.
- With these factors in mind, it might be prudent for potential investors to monitor the company's financial trajectory post-IPO before making any investment commitments.
About the company
Founded in
28 Dec'05
Managing director
Dhruv Shringi
- Yatra Online Ltd (Yatra) is India’s largest corporate travel service provider and ranks third in terms of both gross bookings and operating revenues for FY23. It provides a range of services which span domestic and international air ticketing, bus and rail bookings, taxi reservations, hotel bookings, and other related services.
- Boasting an expansive network, Yatra offers over 94,000 hotel and homestay options in around 1,400 Indian cities. Furthermore, they connect with over 2 million hotels on a global scale, making them India's premier platform for domestic hotel bookings. Recently, they've broadened their portfolio by launching Yatra Freight, further enhancing their corporate service offerings.
STRENGTHS
- Impressive Growth: From FY21 to FY23, Yatra showcased a remarkable CAGR of 74% in its revenue, reaching Rs 380 crore by FY23. After making a positive shift with an EBITDA of Rs 32 crore in FY22, it further escalated to an impressive Rs 67 crore in FY23.
- Robust Return Ratios: In FY23, the Return on Capital Employed was a solid 26%, and the Return on Equity was 18.1%.
RISK FACTORS
- Weak Track Record: Yatra incurred losses in both FY21 and FY22. It was only in FY23 that they managed a modest profit of Rs 7.6 crore, mainly due to their share of Rs 12.2 crore profit from a partnership with an adventure travel firm. Further, over the last three financial years, its average EPS and average Return on Net Worth stood at a negative Rs (2.42) and (23.96)%, respectively.
- Poor Profit Margins: Yatra saw a deeply negative PAT margin of (94.75)% in FY21 and (15.54)% in FY22. Although there was an improvement in FY23 with a positive margin of 2.01%, it's still relatively low. Furthermore, their profitability from Air Ticketing and Hotels and Packages has seen a downward trend, with only a slight uptick in Other Services.
- Employee Retention Issues: The attrition rates have been alarming, standing at 58.92% in FY21, 48.37% in FY22, and an even higher 60.92% in FY23.
- Cash Flow Concerns: The company has had negative cash flow from its operations for the last two fiscal years. Continuous negative cash flow can potentially disrupt its regular operations and hinder growth.
Issue details
Issue type
Mainstream
Issue size
₹ 775 crore
Fresh Issue
₹ 602 crore
OFS
₹ 173 crore
Price range
₹ 135 - 142
Lot size
105 shares
Issue Objective
Net proceeds from the fresh issue will be utilised towards:
- Strategic investments, acquisitions, and inorganic growth;
- Investment in customer acquisition and retention, technology, and other organic growth initiatives; and
- General corporate purposes.
Dates
Bidding open
15 Sep'23
Bidding close
20 Sep'23
Allotment date
22 Sep'23
Refund date
25 Sep'23
Listing
28 Sep'23
IPO Reservations
Qualified institutional buyers
>75%
Non-institutional investors
<15%
Retail individual investors
<10%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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