MakeMyTrip Limited, the Nasdaq-listed, Indian online travel company, said on Tuesday that it will be raising $330 million by issuing shares to existing investors. The funds will be utilised to drive expansion, strategic investments and general corporate purposes.
The funds will be raised in two ways — by placement of 4.58 million shares to investors (names not disclosed) at $36 apiece to raise $165 million and sale of shares to Ctrip.com and MIH Internet SEA (subsidiary of Naspers Limited) at the same price that will net another $165 million.
"Under the Company's share purchase agreement (i) with Ctrip, the Company will issue 916,666 ordinary shares to Ctrip at a price of $36 per ordinary share and (ii) with MIH, the Company will issue 3,666,667 Class B Shares to MIH at a price of $36 per Class B Share. The Class B Shares issued to MIH will be convertible into ordinary shares of the Company on a one-to-one basis," MakeMyTrip said in a media statement.
The company said that the fund-raising exercise will be closed on or around May 5, 2017 and utilised for a range of initiatives.
"Proceeds from the transactions will be used to fund business expansion, strategic investments, technology and product development, marketing and promotions, working capital and general corporate purposes," MakeMyTrip said.
MakeMyTrip operates a clutch of portals comprising MakeMyTrip.com, goibibo.com, RightStay.com and redbus.in.
In October 2016, MakeMyTrip bought Ibibo Group's travel business in India for an undisclosed amount in an all-stock deal.
For the year ended March 2016, MakeMyTrip clocked revenues of $336 million and loss of $88 million; 50 percent of the revenues came from hotels and packages and the remaining from air ticket sales.
Its India business, which contributes about 85 percent of its total revenues, stood at Rs 1,919 crore.
MakeMyTrip's offerings include air ticketing, hotels, packages, rail tickets, bus tickets, car hire and related travel arrangements, such as facilitating access to third-party travel insurance and visa processing.
