Yatra Online IPO Listed at -10.21% discount

Yatra Online IPO had a face value of ₹1 per share and the book built IPO was priced in the range of ₹135 to ₹142. The IPO of Yatra Online Ltd combined a fresh issue and an offer for sale (OFS). The fresh issue was of 4,23,94,366 shares (4.24 crore shares approximately), which at the upper price band of ₹142 per share was worth  ₹602 crore. The offer for sale (OFS) portion entailed the issue of 1,21,83,099 shares (1.22 crore shares approximately), which at the upper price band of ₹142 per share was worth ₹173 crore. Hence, the overall IPO comprised the issue and sale of 5,45,77,465 shares (5.46 crore shares approximately), which at the upper price band of ₹142 per share translated into total IPO size of ₹775 crore.

The response was tepid. The subscription was 1.66X  overall and QIB subscription was at 2.10X. In addition, the retail portion got subscribed 2.19X in the IPO while the HNI / NII portion fell short with subscription of just 0.43X or 43% of the HNI / NII quota. Hence the listing was expected to be modest. However, while the listing was weak, the stock of Yatra Online Ltd did bounce back sharply from lower levels. Here is the listing story of Yatra Online Ltd on 28th September 2023. Let us first look at the NSE listing. On 28th September 2023, the stock of Yatra Online Ltd listed on the NSE at a price of ₹127.50, a discount of -10.21% on the IPO issue price of ₹142 per share. On the BSE also, the stock listed at ₹130, a discount of -8.45% on the IPO issue price of ₹142 per share.

How the stock of Yatra Online IPO closed on both exchanges

On the NSE, Yatra Online IPO closed on 28th September 2023 at a price of ₹136. That is a first day closing discount of -4.23% on the issue price of ₹142 but a premium of 6.67% on the listing price of ₹127.50. In fact, the stock bounced back sharply after a weak opening, to narrow the discount on the IPO price, by the close of the day. On the BSE, the stock closed at ₹135.95. That represents a first day closing discount of -4.26% on the IPO issue price but a premium of 4.58% above the listing price on the BSE. On both the exchanges, the stock listed well below the IPO issue price but managed to bounce sharply by close. In fact, the opening price turned out to be the low price of the day on the NSE and close to the low on BSE. But, what is really appreciable about the bounce in Yatra Online Ltd is that it comes on a day when the Nifty was down by193 points and the Sensex was down by 610 points.

Price volume story on the NSE

The table below captures the opening price discovery in the pre-open period on the NSE.

Data Source: NSE

Let us look at how the stock of Yatra Online Ltd traversed on the National Stock Exchange (NSE) on 28th September 2023. On Day-1 of listing, Yatra Online Ltd touched a high of ₹138.55 on the NSE and a low of ₹127.50. If you look at the range of prices, the stock opening price turned out to be the low point of the day while the closing price of the day was pretty much near to the high price of the day. On Day-1 of listing, the Yatra Online Ltd stock traded a total of 103.22 lakh shares on NSE amounting to value of ₹139.77 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers in the second half of trading, which led to the sharp bounce in the stock, despite a weak opening for the day. More importantly, this bounce came on a day when the Nifty was down by 193 points and the Sensex had fallen by 610 points.

Price volume story on the BSE

Let us look at how the stock of Yatra Online Ltd traversed on the Bombay Stock Exchange (BSE) on 28th September 2023. On Day-1 of listing, Yatra Online Ltd touched a high of ₹138.50 on the BSE and a low of ₹127.40. If you look at the range of prices, the stock opening price turned out to be close to the low point of the day while the closing price of the day was pretty much near to the high price of the day. On Day-1 of listing, the Yatra Online Ltd stock traded a total of 7.43 lakh shares on BSE amounting to value of ₹10.05 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers in the second half of trading, which led to the sharp bounce in the stock, despite a weak opening for the day. More importantly, this bounce came on a day when the Nifty was down by a steep 193 points and the Sensex had fallen by a whopping 610 points.

Market capitalization, free float, and delivery volumes

On the NSE, out of the total 103.22 lakh shares traded during the first day of trading, the deliverable quantity represented 42.92 lakh shares or a deliverable percentage of 41.58% on the NSE, which is much lower than the routine listing day median of delivery volumes. That shows a lot of trading and speculative action in the counter. Even on the BSE, out of the total 7.43 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 1.69 lakh shares representing total deliverable percentage of just 22.81%, well below the delivery action on the NSE. Unlike SME segment stocks, which are on T2T on the day of listing, the mainboard IPOs permit intraday trading even on the day of listing.

At the close of Day-1 of listing, Yatra Online Ltd had a market capitalization of ₹2,133.28 crore with free-float market cap of ₹405.32 crore. Yatra Online Ltd has issued capital of 15.69 crore shares with a par value of ₹1 per share.