Juniper Hotels shares jump over 10% after flat market debut

New Delhi: Shares of Juniper Hotels Ltd, which runs hotels under the Hyatt brand, made a flat market debut on Wednesday against the issue price of Rs 360 but later jumped more than 10 per cent.

The stock opened at Rs 361.20, up 0.33 per cent from the issue price on the BSE.

However, it later gathered momentum and jumped 10.36 per cent to Rs 397.30 -- its upper circuit limit.

The stock made its debut at Rs 365, reflecting a gain of 1.38 per cent on the NSE.

Shares of the company further zoomed 10.47 per cent to Rs 397.70.

The initial share sale of Juniper Hotels was subscribed 2.08 times on the last day of the offer on Friday.

The IPO was entirely a fresh issue of equity shares worth Rs 1,800 crore and the price band for the offer was Rs 342-360 apiece.

Funds to the tune of Rs 1,500 crore will be utilised for repayment of debt availed by the company and subsidiaries -- Chartered Hotels Pvt Ltd and Chartered Hampi Hotels Pvt Ltd.

Besides, a portion of the proceeds will be used for general corporate purposes.

The hospitality firm had a portfolio of seven hotels and serviced apartments and operated 1,836 keys across the luxury, upper upscale, and upscale categories of hotels in India as of September 2023.

Currently, Saraf Hotels owns a 44.68 per cent stake in Juniper Hotels, Two Seas Holdings holds a 50 per cent stake and the remaining 5.32 per cent shareholding is with Juniper Investments.