MakeMyTrip to raise $330 million via share sale
Online travel firm MakeMyTrip today said it will raise $330 million (over Rs 2,115 crore) through share sale to investors as well as to Ctrip and Naspers’ arm MIH Internet, to fund expansion.
The company has entered into share purchase agreements with undisclosed investors for placement of its ordinary shares, which is expected to generate gross proceeds of $165 million.
The company will issue 4,583,334 ordinary shares in aggregate to investors at $36 per scrip.
Moreover, it has also signed share purchase agreements with Nasdaq-listed Ctrip.com International Ltd and MIH Internet SEA Pte Ltd, a subsidiary of Naspers Ltd for issuance of the company’s ordinary shares and Class B convertible ordinary shares respectively.
Under the agreement, MakeMyTrip will issue 9,16,666 ordinary shares to Ctrip at $36 per ordinary share and 36,66,667 Class B Shares to MIH at a price of $36 per Class B Share.
“The placement and the transactions with Ctrip and MIH are expected to generate total gross proceeds of $330 million,” MakeMyTrip said in a statement.
The closing of placement and the transactions with Ctrip and MIH is likely to happen on or around May 5, 2017, it added.
On the utilisation of the new funds, it said: “Proceeds from the transactions will be used to fund business expansion, strategic investments, technology and product development, marketing and promotions, working capital and general corporate purposes.”