MakeMyTrip IPO: Online Travel Giant Files Confidential Draft Papers With SEBI for India Listing; What It Means for Investors
MakeMyTrip, the online travel booking major, has started its IPO formal procedures for a listing on Indian stock exchanges. MakeMyTrip starts the IPO process for its India offering, with its wholly owned Indian subsidiary, MakeMyTrip (India) Limited, confidently filing the DRHP pre-filed with SEBI. The SEBI draft documents for the IPO were also filed with both BSE and NSE.
The company has, however, not revealed the size of the issue and valuation.
The decision came in a July 17 filing with the U.S. Securities and Exchange Commission (SEC). Should the plan go through, a listing for the company – a Nasdaq member since 2011 – would mark a huge entry into India’s travel-tech sector.
Why Has MakeMyTrip Chosen The Confidential Route?
MakeMyTrip has gone in for SEBI’s confidential pre-filing mechanism instead of a traditional DRHP. This route allows companies to start the regulatory review process without revealing sensitive details such as the issue size, valuation, price band or other key terms of the IPO right away.
This option has become increasingly popular with big companies as it provides more flexibility in the early stages of the listing process and avoids market speculation before the IPO plans are finalised.
Once SEBI approval is received and the company decides to go ahead, MakeMyTrip will come out with its Red Herring Prospectus (RHP), which will have details like final offer size, price band, valuation and subscription schedule.
IPO Likely to Be Dominated by Offer for Sale
Market reports suggest the proposed IPO will largely be an Offer for Sale (OFS) under which the existing shareholders will offload some of their holdings.
In OFS, shareholders selling their shares receive the sale proceeds, not the company itself. Reports suggest that Kotak Mahindra Capital, Axis Capital, JPMorgan India and Morgan Stanley India have been roped in as the book-running lead managers for the issue, though the company has not made any formal announcement in this regard.
What Happens After Listing In India?
In a regulatory filing, the company said the proposed IPO would involve the Nasdaq-listed parent company, MakeMyTrip Limited, and its wholly owned subsidiary, ibibo Group Holdings (Singapore) Pte Ltd, selling equity shares of MakeMyTrip (India) Limited.
MakeMyTrip India will remain a subsidiary of the parent company and its financial results will continue to be consolidated with the Nasdaq-listed entity even after the share sale.
“The proposed initial public offering 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. Upon completion of the proposed initial public offering, MMT India will continue to be a subsidiary of MakeMyTrip and will be included in MakeMyTrip’s consolidated financial statements,” the company said in its filing with the US SEC.
Why Is The Company Looking To List In India?
MakeMyTrip said a domestic listing could boost its visibility in its biggest market. Besides boosting brand visibility, the company believes that an India-listed company could help it attract and retain talent in the highly competitive technology hiring market in India.
The company also said that the proceeds received by MakeMyTrip and ibibo Group Holdings from the share sale are expected to strengthen the group’s cash position. The proceeds may be used for long-term business expansion, strategic acquisitions, repurchases of other classes of securities, including convertible securities, and other growth opportunities.
The filing said, subject to regulatory approvals, the company could explore a structure that would allow shareholders to access securities that are listed and fungible in the Indian and US capital markets and could potentially provide investors with more flexibility in the future.
What Happens Next?
The confidential filing is the first step in the IPO process. SEBI will now go through the draft papers and could ask for more details or clarification from the company.
If the regulator approves the proposal and MakeMyTrip decides to go ahead, the company will file its red herring prospectus with the public. Then investors will get to know the key details like issue size, valuation, price band, offer structure and the IPO timetable.
The filing, for now, signals that one of India’s largest online travel platforms is preparing to bring its Indian business closer to local investors while remaining under the umbrella of its Nasdaq-listed parent.
(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The views, opinions, and recommendations expressed herein are those of the respective experts. Readers are advised to consult a qualified financial advisor before making any investment decisions.)
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Priyanka Roshan is a business writer and assistant editor at the NewsX website who tracks everything from stock market swings and corporate earnings to personal finance trends and policy shifts. Known for turning fast-moving business developments into sharp, reader-friendly stories, she combines speed, accuracy, and a data-driven approach to break down complex financial news for everyday audiences.
With over 9.5 years of newsroom experience, Priyanka has worked with leading media organisations, including Bussiness, Times Now, and Ping Digital, covering diverse beats such as business, politics, technology, auto, travel, sports, and the world. From live breaking news desks to SEO-led digital storytelling, she specialises in creating engaging content that keeps readers informed without overwhelming them.
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