NASDAQ-listed travel booking platform MakeMyTrip on Friday said it has confidentially filed draft red herring prospectus (DRHP) papers with capital markets regulator Sebi for its proposed initial public offering (IPO) of its Indian subsidiary.
The company said its wholly-owned subsidiary, MakeMyTrip (India) Ltd (MMT India), has submitted the confidential filing with the Securities and Exchange Board of India (Sebi), BSE, and the National Stock Exchange (NSE) for listing on the main board of the stock exchanges.
The proposed IPO is expected to involve a sale of equity shares in MMT India by MakeMyTrip and its wholly owned subsidiary, ibibo Group Holdings (Singapore) Pte Ltd, the Gurugram-headquartered firm, said in a regulatory filing on NASDAQ.
Following completion of the proposed IPO, MMT India will continue to remain a subsidiary of MakeMyTrip and its financial results will continue to be consolidated with those of the parent company, it 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.
Net proceeds received by MakeMyTrip and ibibo Holdings from the sale of shares in MMT India will further strengthen the cash position of MakeMyTrip and are expected to be utilised for long-term growth, strategic inorganic initiatives and repurchases of different classes of securities (including convertible securities) by MakeMyTrip, the company said in the filing.
Subject to regulatory approvals, MakeMyTrip and MMT India may evaluate alternatives in medium-term to enable our respective shareholders to enjoy the benefits of a security at MMT India level that is fungible and listed across India and US capital markets, the company said.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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