Nasdaq-listed travel booking platform MakeMyTrip's India subsidiary has received Sebi''s approval to launch an initial public offering (IPO), according to an update available on the market regulator's website on Monday. MakeMyTrip (India) Ltd (MMT India) had filed draft papers with Sebi in July through the confidential route. After examining the draft documents, the regulator issued its final observations on November 6.
SEBI's observations mark an important step in the IPO process, allowing the company to proceed with preparations for its public issues, subject to applicable regulatory requirements.
The proposed IPO is expected to comprise a sale of equity shares in MMT India by its parent MakeMyTrip and its wholly-owned subsidiary, ibibo Group Holdings (Singapore) Pte Ltd, the Gurugram-headquartered company said in a regulatory filing with Nasdaq.
Following the completion of the proposed IPO, MMT India will continue to remain a subsidiary of MakeMyTrip, with its financial results continuing to be consolidated with those of the parent company, it had said.
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"MakeMyTrip expects the proposed initial public offering and listing of MMT India to enhance its brand visibility and support MMT India''s ability to incentivise and promote talent in a competitive technology recruitment landscape," the filing stated.
The net proceeds received by MakeMyTrip and ibibo Group Holdings from the sale of shares in MMT India are expected to strengthen the parent''s cash position. The proceeds will be utilised for long-term growth, strategic inorganic initiatives and repurchases of different classes of securities, including convertible securities, by MakeMyTrip, the filing stated.
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