The Juniper Hotels Limited IPO saw a significant increase on its third day, with the total subscription rate reaching 2.08. Qualified Institutional Buyers (QIBs) showed strong interest, subscribing at a high rate of 2.96. In contrast, Non-Institutional Investors were more reserved with a subscription rate of 0.85. Retail Individual Investors (RIIs) also displayed steady interest, contributing to a subscription rate of 1.28.
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Juniper Hotels Limited IPO – Fundamental Analysis
Juniper Hotels Limited’s IPO reveals a trajectory of revenue growth alongside pronounced profitability challenges and liquidity issues. Despite a notable increase in revenue from ₹1,663.51 million in 2021 to ₹6,668.54 million in 2023, the company faces persisting struggles with profitability, experiencing substantial losses in prior years. With negative Return on Net Worth values and ongoing liquidity concerns reflected in low current ratios, Juniper Hotels presents a high-risk investment opportunity, necessitating thorough consideration of its potential for turnaround and sustained viability in the hospitality sector.
Juniper Hotels Limited IPO – Risks And Challenges:
Juniper Hotels’ IPO faces risks from heightened losses following the acquisition of CHPL and CHHPL, with potential impacts on financial stability and reputation. Revenue dependence on specific properties like Grand Hyatt Mumbai and Andaz Delhi exposes the company to fluctuations influenced by competitive pressures, COVID-19, and governmental policies. Moreover, fixed expenses, including employee wages and utility costs, pose challenges during demand variations, potentially impeding cost-cutting efforts and affecting financial performance amidst industry uncertainties.
