New Delhi, Feb 5 (IANS) Online travel major MakeMyTrip on Friday announced fund raising of $200 million (approximately Rs 1,458 crore) through zero per cent interest coupon bond.
The latest fund raise for the company comes at a time when the travel and tourism industry has been hit hard by the Covid-19 pandemic.
“While the travel industry is in the midst of very difficult times, we are pleased with the overwhelming response to our convertible bond offering,” Mohit Kabra, Group Chief Financial Officer, MakeMyTrip Ltd. said in a statement.
“This raise will bolster our cash reserves allowing us to meet the working capital requirements as business recovery gathers momentum and also pursue any investment opportunities in the growing Indian market,” he said.
MakeMyTrip generated revenue of $56.8 million in the quarter ended December 31, 2020, a decrease of 61.3 per cent over revenue of $146.9 million in the quarter ended December 31, 2019.
The decrease in revenue was primarily due to the continued impact of the Covid-19 pandemic, including lower travel demand due to travel restrictions.
However, the company’s revenue in the current reported quarter increased from $21.1 million in the quarter ended September 30, 2020, an improvement of $35.7 million quarter on quarter due to the gradual recovery in travel demand.
As on December 31, 2020, the balance of cash and cash equivalents and term deposits on the company’s balance sheet was $227.6 million, MakeMyTrip said.
On February 3, MakeMyTrip proposed to offer up to $175 million in aggregate principal amount of convertible senior notes due 2028.
The Notes Offering has now been upsized from the previously announced offering of $175 million in aggregate principal amount of the Notes as the company on Friday announced the pricing of $200 million in aggregate principal amount of 0.00 per cent convertible senior notes due 2028.
“This raise at zero coupon and conversion premium of 37.5 per cent reflects the appetite of global investors to invest behind strong Indian brands and businesses,” Kabra said.