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Nasdaq-listed travel booking platform MakeMyTrip has moved a step closer to listing its India business, with the Securities and Exchange Board of India (SEBI) granting approval for the proposed initial public offering (IPO), as shared in media reports.
MakeMyTrip (India) Ltd (MMT India) had submitted its draft IPO papers to SEBI in July through the confidential filing route. Following a review of the documents, the regulator issued its final observations on November 6.
The regulatory clearance marks a key milestone in the listing process, enabling the company to move ahead with the proposed public issue, subject to applicable requirements.
According to a regulatory filing by MakeMyTrip, the IPO is expected to comprise an offer for sale (OFS) of equity shares in MMT India by its parent company, MakeMyTrip, and its wholly-owned subsidiary, ibibo Group Holdings (Singapore) Pte Ltd.
The proposed listing will not result in a change in the subsidiary's status. MMT India will continue to remain a subsidiary of MakeMyTrip after the IPO, with its financial results consolidated into those of the parent company.
"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.
Proceeds from the proposed share sale are expected to enhance the cash position of MakeMyTrip and its subsidiary, ibibo Group Holdings.
According to the filing, the funds will be deployed towards long-term growth opportunities, strategic inorganic initiatives and the repurchase of various classes of securities, including convertible securities, by MakeMyTrip.
