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MakeMyTrip has initiated the process to list its India business by confidentially filing a draft red herring prospectus (DRHP) with SEBI for the proposed initial public offering (IPO) of its wholly-owned subsidiary, MakeMyTrip (India) Ltd. The offering is expected to comprise a sale of existing equity shares by the parent company and another wholly-owned subsidiary. The company said the listing is aimed at improving brand visibility, strengthening talent acquisition, and supporting long-term growth while continuing to retain control over its India business after the IPO.
Nasdaq-listed online travel booking platform MakeMyTrip has initiated the process for the proposed initial public offering (IPO) of its India business after its wholly-owned subsidiary, MakeMyTrip (India) Ltd (MMT India), confidentially filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).
According to a regulatory filing submitted by the Gurugram-headquartered company to Nasdaq, MMT India has also filed the confidential DRHP with the BSE and the National Stock Exchange (NSE) for the proposed listing on the main boards of both exchanges.
The proposed IPO is expected to consist of an offer for sale (OFS) of equity shares in MMT India by MakeMyTrip and its wholly-owned subsidiary, ibibo Group Holdings (Singapore) Pte Ltd. The company has not yet disclosed the size of the issue or the number of shares proposed to be offered under the confidential filing.
The company stated that after completion of the proposed IPO, MMT India will continue to remain a subsidiary of MakeMyTrip. Its financial performance will also continue to be consolidated with that of the parent company, indicating that MakeMyTrip intends to retain control over its India operations even after the listing.
In its regulatory filing, the company said it expects the proposed IPO and listing of MMT India to improve the company's brand visibility in India. It also believes the listing will strengthen MMT India's ability to attract, retain and incentivise talent in India's highly competitive technology hiring market.
The filing further stated that the net proceeds received by MakeMyTrip and ibibo Group Holdings from the sale of their shares in MMT India are expected to strengthen the group's cash position. The company plans to utilise these funds to support long-term business growth, pursue strategic inorganic opportunities such as acquisitions and investments, and repurchase different classes of securities, including convertible securities.
The company also said that, subject to receiving the required regulatory approvals, MakeMyTrip and MMT India may evaluate options in the medium term to enable their respective shareholders to benefit from a security issued at the MMT India level that can be traded across both Indian and US capital markets.
The confidential filing route allows companies to submit IPO documents to SEBI for review without immediately making detailed offer documents public. Over the past few years, several companies have opted for this route as it provides greater flexibility in the listing process and allows issuers to assess market conditions before proceeding with a public issue.
MakeMyTrip, one of India's largest online travel platforms, operates through brands including MakeMyTrip, Goibibo and RedBus. The company has continued to expand its presence across flight, hotel, holiday package, rail, bus and other travel booking services, benefiting from the steady recovery and long-term growth of India's travel and tourism sector.
Source PTI
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