Yatra Online, Inc.'s Indian Subsidiary, Yatra Online Limited, Files Draft Red Herring Prospectus

Proceeds of IPO to Fund Range of Organic Growth Initiatives and Strategic Investments

March 25, 2022 7:30 AM EDT | Source: Yatra Online Inc.

Gurugram, India and New York, New York--(Newsfile Corp. - March 25, 2022) - Yatra Online, Inc. (NASDAQ: YTRA), India's leading corporate travel services provider and one of India's leading online travel companies today announced that its Indian subsidiary, Yatra Online Limited, filed a Draft Red Herring Prospectus ("DRHP") with the Securities and Exchange Board of India ("SEBI") on March 25, 2022, for an initial public offering (the "IPO") aggregating up to INR 7,500 million or approximately US$100 million of primary proceeds and a secondary offering of up to 8,896,998 Equity Shares by THCL Travel Holding Cyprus Limited ("THCL"), a subsidiary of Yatra Online, Inc., which amounts to approximately 8% of the shares outstanding of Yatra Online Limited. You can find more details on the filing at https://investors.yatra.com.

"Over the last 15 years, we have grown our business to become one of India's leading online travel agencies," said Dhruv Shringi, Chief Executive Officer of Yatra Online, Inc. "The Indian travel industry is expected to continue to grow, driven by development of tourism infrastructure, rising discretionary spending and more frequent business and leisure travel. With this proposed equity offering, we will be able to tap into a complementary shareholder base which provides a tremendous opportunity to benefit from growing tourism spending in India and to accelerate the important growth initiatives we have underway, driving value for our investors over the long-term."

Yatra Online, Inc. expects that the IPO in India of Yatra Online Limited will enable the company to:

  • Access domestic Indian institutional and retail investors who are currently excluded from investing in Yatra Online, Inc. through its NASDAQ listing due to regulatory constraints.

  • Expand the potential shareholder base of the consolidated company to add the Indian capital markets and increase its visibility to a larger pool of equity analysts.

  • Raise capital at a potentially higher valuation thereby reducing dilution and balance sheet risk.

The extent of dilution of Yatra Online, Inc. on account of primary issuance of shares and the value of proceeds through secondary sale of shares by THCL will be determined by a price discovery process. The IPO of Yatra Online Limited will be subject to supportive market conditions, as well as corporate, regulatory and other approvals, as applicable or required. There is no assurance that the IPO will proceed.

The Company will be hosting a conference call today, March 25, 2022, at 8:30 AM Eastern Standard Time (or 6:00 PM India Standard Time) to discuss the filing.

Dial-in details for the live conference call:
US/International dial-in number: +1 856-344-9221
Confirmation Code: 7615407 (Callers should dial in 5-10 minutes prior to the start time and provide the operator with the Confirmation Code)

Dial-in details for the replay:
A telephone replay will be available for five days following the conclusion of the conference call.
US/International dial-in number: +1-719-457-0820
Confirmation Code: 7615407

This replay can also be accessed through the Investor Relations section of the Company's website at http://investors.yatra.com

About Yatra Online, Inc.
Yatra Online, Inc. is the ultimate parent company of Yatra Online Limited (Formerly known as Yatra Online Private Limited) whose corporate office is based in Gurugram, India and is India's leading corporate travel services provider with over 700 large corporate customers and one of India's leading online travel companies and operates the website https://www.yatra.com/. The company provides information, pricing, availability, and booking facility for domestic and international air travel, domestic and international hotel bookings, holiday packages, buses, trains, in city activities, inter-city and point-to-point cabs, homestays and cruises. With approximately 94,000 hotels and homestays contracted in approximately 1,400 cities across India as well as more than 2 million hotels around the world, the company is India's largest platform for domestic hotels. The company recently launched a freight forwarding business called Yatra Freight to further expand its corporate service offerings.

Safe Harbor Statement
This press release contains certain forward-looking statements, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the Company's current expectations, assumptions, estimates and projections about the Company and its industry. These forward-looking statements are subject to various risks and uncertainties. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "anticipate," "believe," "estimate," "expect," "intend," "will," "project," "seek," "should" and similar expressions. Such statements include, among other things, management's beliefs, our strategic and operational plans, and our response to the letter to shareholders from Maguire Asset Management, LLC. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, the outcome of the legal proceedings we have instituted against Ebix and any other legal proceedings that may be initiated against us and others, in connection with the termination of the pending merger agreement between us and Ebix; the effect that the termination of the merger agreement may have on the price of our ordinary shares, and our business, financial condition and results of operations; the impact of the COVID-19 pandemic; our ability to generate positive cash flow and the sufficiency of our operating cash flow to meet our liquidity needs; our future financial performance, including our revenue, cost of revenue, operating expenses and our ability to achieve and maintain profitability; the impact of increasing competition in the Indian travel industry and our expectations regarding the development of our industry and the competitive environment in which we operate; the slowdown in Indian economic growth and other declines or disruptions in the Indian economy in general and travel industry in particular, including disruptions caused by safety concerns, terrorist attacks, regional conflicts, pandemics and natural calamities, our ability to successfully negotiate our contracts with airline suppliers and global distribution system service providers and mitigate any negative impacts on our revenue that result from reduced commissions, incentive payments and fees we receive; the risk that airline suppliers (including our GDS service providers) may reduce or eliminate the commission and other fees they pay to us for the sale of air tickets; our ability to pursue strategic partnerships and the risks associated with our business partners; the potential impact of recent developments in the Indian travel industry on our profitability and financial condition; political and economic stability in and around India and other key travel destinations; our ability to maintain and increase our brand awareness; our ability to realize the anticipated benefits of any past or future acquisitions; our ability to successfully implement our growth strategy; our ability to attract, train and retain executives and other qualified employees, including suitable replacements for any members of our senior management team or other employees who may seek other employment opportunities as a result of the certain cost reduction initiatives that we have taken in response to the COVID-19 pandemic; actions of activist shareholders; and our ability to successfully implement any new business initiatives. These and other factors are discussed in our reports filed with the U.S. Securities and Exchange Commission. All information provided in this press release is provided as of the date of issuance of this press release, and we do not undertake any obligation to update any forward-looking statement, except as required under applicable law.

For more information, please contact:
Manish Hemrajani
Yatra Online, Inc.
VP, Head of Corporate Development and Investor Relations

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