The IPO is expected to involve a sale of equity shares in MakeMyTrip India by MakeMyTrip and its wholly owned subsidiary, ibibo Group Holdings (Singapore) Pte Ltd. The Gurugram-headquartered travel company disclosed the plan in a regulatory filing with Nasdaq.
After the proposed IPO, MakeMyTrip India will continue to remain a subsidiary of MakeMyTrip. Its financial results will also continue to be consolidated with those of the parent company.
The company said proceeds received by MakeMyTrip and ibibo Holdings from the sale of shares in MakeMyTrip India will strengthen MakeMyTrip’s cash position. The funds are expected to be used for long-term growth, strategic inorganic initiatives and repurchases of different classes of securities, including convertible securities.
MakeMyTrip said it continues to see strong long-term travel demand in India. It said demand is being supported by a growing middle class, rising spending on travel, higher digital adoption and low penetration of organised travel services.
The company also pointed to its scale in the Indian travel market. It has more than 87 million lifetime transacted retail customers and over 77,000 SME and large corporate customers. It also said its app has seen more than 549 million downloads.
MakeMyTrip said it has sold more than 32.5 million hotel room nights under its hotels and packages business and more than 104.6 million bus tickets.
The IPO filing comes at a time when India’s travel and tourism market has seen a strong recovery after the pandemic, helped by higher domestic travel, premium leisure demand, business travel and greater use of online booking platforms.
A listing of MakeMyTrip India would give domestic investors a chance to invest directly in one of the country’s largest online travel platforms. The timing, size and other details of the IPO will be known after the regulatory process moves ahead.
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