MakeMyTrip Ltd is planning to raise over $2 billion through a combination of new share issuance and convertible bond sales, aiming to repurchase a portion of the stake held by Trip.com Group Ltd.
According to a statement issued on Monday, the US-listed Indian travel platform will offer 14 million new shares, while also targeting $1.25 billion from the sale of zero-coupon convertible bonds.
Based on Monday’s closing price of $100.88 per share, the equity portion alone would amount to around $1.4 billion.
As of March 31, Trip.com held 45.34% of voting power in MakeMyTrip. The prospectus states that the proposed share sale and stake repurchase will reduce Trip.com’s influence to 19.99%.
Founded in 2000, MakeMyTrip provides a wide range of online travel services, including flight and hotel bookings, travel packages, homestays, and ground transportation, as listed on its official website.
According to a source familiar with the matter, the convertible bonds will carry a conversion premium between 25% and 35%. Both the equity and bond offerings are expected to be priced after U.S. markets close on Tuesday.
A MakeMyTrip representative has not yet responded to requests for comment.
Meanwhile, Morgan Stanley and JPMorgan Chase & Co. are acting as lead managers for the share offering, as detailed in the company’s prospectus.
With this dual offering, MakeMyTrip is taking a bold step to strengthen its capital base, reduce the voting influence of Trip.com, and potentially gain greater strategic independence. The move not only reflects investor confidence in the company’s long-term growth prospects but also signals renewed momentum in India’s online travel and tourism sector.
