IPO Details
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Schedule of Neptune Holidays IPO
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Listing on exchange
About Neptune Holidays Ltd IPO
The IPO of Neptune Holidays Ltd consists entirely fresh issue of up to 48,00,000 equity shares. It has no offer for sale and is a 100% book-built issue. The IPO opens on TBA and closes on TBA. The credit of shares to the demat account will take place on TBA. The basis of allotment will take place on TBA and the initiation of refunds will take place on TBA.
Objectives of Neptune Holidays Ltd IPO
- Funding of working capital requirements of the company
- Investment in subsidiary
- Prepayment or repayment of all or a portion of certain secured loans availed by the company
- General corporate purposes
Neptune Holidays Ltd IPO Valuation
Neptune Holidays Ltd IPO Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net issue |
Non-institutional Bidders | Not less than 15% of the net issue |
Retail Individual Bidders | Not less than 35% of the net issue |
Industry Outlook
According to WTTC, over the next decade, India’s travel and tourism GDP is expected to grow at an average of 7.8% annually. In 2021, the travel & tourism industry’s contribution to the GDP was US$ 178 billion; this is expected to reach US$ 512 billion by 2028.
By 2029, it is expected to account for 53 million jobs. In India, the industry’s direct contribution to the GDP is expected to record an annual growth of 7-9% between 2019 and 2030. The travel market in India is projected to reach US$ 125 billion by FY27 from an estimated US$ 75 billion in FY20.
Company Information
Neptune Holidays Ltd offers a comprehensive range of travel-related products and services. The company operates as a B2B (Business-to-Business) tours and travel service provider, specialising in offering customised travel solutions to corporate clients, travel agencies, and other businesses within the travel industry.
The company caters to the diverse needs of businesses, ensuring seamless travel experiences for their clients and employees as well as retail customers.
Neptune Holidays Ltd Strengths
Product Spectrum and Portfolio
Neptune’s travel packages are designed to provide customers with an all-inclusive, well-planned, and hassle-free travel experience. These packages often combine essential services like transportation, accommodation, meals, guided tours, and sometimes even unique activities or experiences, all bundled together at a set price.
Its wide choice of service offerings caters to all the travel needs of its clients. It provides a ‘One Stop Shop’ for all the travel requirements from visa to ticketing, to holidays, to insurance, to foreign exchange, MICE and wedding package under one roof.
Scalable Business Models
The company’s business model is order driven, and comprises optimum utilisation of its resources and thereby enabling it to achieve consequent economies of scale. It believes that this business model has proved successful and scalable for it in the last financial years. The company can scale upward as per the requirement generated by the company.
Ensuring Satisfactory Customer Experience Through Assisted Travel services
The company’s operational practices are aligned with consumer needs and preferences and are targeted at boosting overall customer experience across all its establishments. It continuously looks for ways to improve the experience of customers that visit its establishments. It has the capability and flexibility to meet the exact specifications as per the requirements of its customers.
Risks of Neptune Holidays Ltd IPO
- Disruptions in the Travel Industry
The company’s business is significantly affected by the trends that occur in the travel industry in India and globally, including the transportation ticketing and accommodation reservation sectors. As the travel industry is highly sensitive to business and personal discretionary spending levels, it tends to decline during general economic downturns. A general decline or disruptions in the travel industry may materially and adversely affect its business and results of operations.
- Reduced Corporate Travel Spending
As the company is serving corporate customers, any economic downturns having negative impact on the corporate may have a negative impact on its business prospects and results of operations. Companies often tighten their budgets and limit business travel to control costs, which can negatively impact its revenue streams.
- Regulatory Changes
Government regulations and policies in India can affect the demand for, expenses related to and availability of the company’s services. It has incurred and expects to continue incur costs for compliance with such laws and regulations. Any changes in government regulations and policies could adversely affect its business and results of operations.
Comparison with peers
| Company Name | Revenue from Operations (in ₹ crores) | EPS in ₹ | NAV in ₹ per share | Return on Net Worth (in %) |
|---|---|---|---|---|
Neptune Holidays Ltd | 102.287406 | 7.26 | 17.12 | 42.43 |
Thomas Cook (India) Ltd | 1990.38 | 2.15 | 2.12 | 5.39 |
International Travel House Ltd | 217.3279 | 28.15 | 178.21 | 15.80 |
Anchor Investor Bidding Date TBA
IPO Registrar and Book Running Lead Manager
- Registrar: Bigshare Services Pvt Ltd
- Book Running Lead Manager: Horizon Management Pvt Ltd
Business Model
Operating as a B2B tours and travels service provider, Neptune Holidays Ltd offers a comprehensive range of travel-related products and services. It buys out the hotel room nights, pre-purchases airline seats, and pre-books charter flights for Bhutan for its B2B segment which enables it to offer better pricing and options to its clients.
The company also operates through a subsidiary company, namely, Neptune Tours & Travels Private Ltd which became a subsidiary of the Company w.e.f. April 10, 2023. Through its subsidiary, it offers ticketing, holiday packages, MICE events, wedding and ancillary value-added services across India and internationally.
Company Growth Trajectory
The company’s revenue from operations grew from ₹33.5164 crores in FY 22 to ₹102.2874 crores in FY 24. EBITDA grew from ₹5.9540 crores in FY 22 to ₹13.2744 crores in FY 24. It has over 6400 B2B clients and has sold 22043 travel packages in the last 3 years.
It offers 12 Indian travel destination packages and its scalable business models with strong promoters and Board of Directors supported by an experienced senior management team has helped it achieve growth over the years.
Market Position
Neptune Holidays Ltd has over 15 years of expertise in offering tailored travel products and services catering to the domestic and international travel needs of its clients. It’s the leading IATA (International Air Transport Association, Geneva, Switzerland) approved travel agents of Eastern India. The company’s branch offices are located at Rajasthan, Himachal Pradesh, Sikkim and Orissa.
Neptune Holidays Ltd Profit and Loss
| Parameter | FY 24 |
|---|---|
Total Income (in ₹ crores) | 110.489128 |
Profit Before Tax (in ₹ crores) | 12.810296 |
Profit After Tax (in ₹ crores) | 9.3288 |
EPS in ₹ | 7.26 |
Neptune Holidays Ltd Balance Sheet
| Parameter | FY 24 |
|---|---|
Profit Before Tax (in ₹ crores) | 12.810296 |
Net Cash Flow from/ (used in) Operating Activities (in ₹ crores) | (6.825677) |
Net Cash Flow from/ (used in) Investing Activities (in ₹ crores) | (8.055896) |
Net Cash Flow from/ (used in) Financing Activities (in ₹ crores) | 12.265166 |
Cash and Bank Balance at the End of the Year (in ₹ crores) | 0.714344 |
How to Check Allotment Status of Neptune Holidays Ltd IPO?
1. Visit the Registrar’s Website
Visit the official website of Bigshare Services Pvt Ltd and choose ‘IPO Allotment Status’ from ‘Solutions’. Click on any one of the servers, choose the company name from the dropdown and input either your application number, beneficiary ID or PAN number. Enter captcha and click on ‘Search’ to know the allotment status.
2. Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investor Services' tab. Under 'Investors Services', click on 'Status of Issue Application'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:
- Choose the Issue Type
- Select the Issue Name from dropdown
- Put in either your application number or PAN number
- Check the box ‘I’m not a robot’
- Click on ‘Search’ to know allotment status
How to Apply for Neptune Holidays Ltd IPO?
- Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Neptune Holidays IPO FAQs
Where can I read more about Neptune Holidays business?
You can read more about Neptune Holidays and its IPO from the company’s red herring prospectus (RHP) here.
What is the Neptune Holidays Ltd IPO?
The IPO of Neptune Holidays Ltd comprises only a fresh issue of up to 48,00,000 equity shares. There’s no offer for sale.
What are the bidding dates of Neptune Holidays Ltd IPO?
The bidding dates are yet to be announced.
Who is the Chairman and MD of Neptune Holidays Ltd?
Chandra Prakash Bhatter is the chairman and MD of Neptune Holidays Ltd.
From where can I read more about the IPO of Neptune Holidays Ltd?
You can read more about the IPO of Neptune Holidays Ltd from the company’s draft red herring prospectus here
