Juniper Hotels lists at 1.4% premium; find out what’s the right strategy for this stock

The Rs 1,800 crore IPO lists at a discount of 1.4% at Rs 365 on both the bourses on February 28.

The company was seeing no premium in the grey market. The grey market is an illegal way to trade shares before the company gets listed on the bourses. Market participants take cues from the grey market regarding IPOs. 

Juniper Hotels opened its IPO to retail investors on February 21 to offer 50 million shares at a price band of Rs 342 – 360 per equity share. The IPO closed the date for bidding on February 23. 

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A retail investor had to bid for a minimum of 40 equity shares summing to Rs 14,400. The anchor investors bought 22.5 million shares of the company worth Rs 810 crore.

The company offers luxury hotel development and ownership. The company operates the Grand Hyatt Mumbai Hotel and Residences, which is India’s largest luxury hotel. The company is owned by Saraf Hotels and Two Seas Holdings.

According to the company, the raised money will be majorly utilized for the payment of debt, which it incurred to acquire CHPL and CHHPL. The money will also be used for other general corporate purposes. 

The IPO’s book-running lead managers are JM Financial, CLSA India, and ICICI Securities, while Kfin Technologies is the registrar for the issue. 

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