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MakeMyTrip to sell 10%

Mumbai, March 11: MakeMyTrip, India’s largest online travel company, is offloading around 10 per cent of the stock through an underwritten public offering. The stock is quoted on the Nasdaq Global Market.

While MakeMyTrip will sell 3 million shares, other investors — SAIF, Tiger Global, Sierra Ventures and executive officers and directors of the company — will be offloading 1.5 million shares. The stock is currently quoting at $25.41 on Nasdaq Global Markets.

Last year, rival Yatra sold a 25 per cent stake to Bollywood actor Salman Khan.

Citigroup, JP Morgan and Deutsche Bank Securities are acting as joint book running managers of the offering.

The company said it would have 41,316,944 ordinary shares outstanding immediately after this offering.

MakeMyTrip said its gross bookings for hotels and packages increased from $94.6 million in fiscal year 2011 to $229.9 million in fiscal year 2013.

Gross bookings for hotels and packages increased from $167.1 million in the nine months ended December 31, 2012 to $226.4 million in the nine months ended December 31, 2013.

In fiscal year 2013, its air ticketing net revenue margins decreased to 6.0 per cent from 7.9 per cent in fiscal year 2012. This decrease was mainly as a result of airlines in India reducing their base commissions in fiscal year 2013.

In the nine months ended December 31, 2013, the company’s air ticketing net revenue margins increased to 6.6 per cent from 6.3 per cent for the nine months ended December 31, 2012. This increase was mainly as a result of an improvement in the negotiated rates and incentive deals we received from our air ticketing suppliers in the nine months ended December 31, 2013.

The company is registered as a Mauritius Category 1 Global Business Company and is a tax resident in Mauritius where it pays an effective tax rate of 3 per cent.

Still,the company suffered a loss of $8.6 million in the year ended March 31, 2013.

In the nine months ended December 31, it reported a loss of $75,300 on a total revenue of $194.52 million.

 
 
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