MakeMyTrip upsizes public offering to 16 million shares at $90 each

NEW YORK & GURUGRAM - MakeMyTrip Ltd (NASDAQ:MMYT) announced Wednesday the upsize and pricing of its underwritten registered public offering of ordinary shares, increasing the size from 14 million to 16 million shares at $90 per share.

The company is granting underwriters a 13-day option to purchase up to 2.4 million additional shares. The offering is expected to close on June 23, 2025, subject to customary closing conditions. The company has demonstrated robust performance with 25% revenue growth over the last twelve months and maintains impressive gross profit margins of 55.6%.

MakeMyTrip estimates net proceeds of approximately $1.41 billion from the equity offering after deducting underwriting discounts, commissions and expenses. If underwriters fully exercise their option to purchase additional shares, proceeds could reach approximately $1.62 billion.

In a separate announcement, the company also priced an offering of 0.00% convertible senior notes worth $1.25 billion due 2030 in a private offering to qualified institutional buyers.

The company plans to use all proceeds from both offerings to repurchase a portion of its Class B shares from Trip.com Group Limited at a price based on the public offering price after deducting underwriting discounts and commissions. This repurchase will be made under a Share Repurchase Agreement entered on June 16, 2025. According to InvestingPro analysis, the stock currently trades above its Fair Value, with analyst price targets ranging from $110 to $135. For deeper insights into MakeMyTrip’s valuation and 13 additional ProTips, subscribers can access the comprehensive Pro Research Report.

Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC are acting as joint book-running managers for the equity offering.

The closing of each offering is conditioned upon the closing of the other offering. The company has filed a registration statement, prospectus supplement and related base prospectus with the SEC regarding the equity offering.

This article is based on a press release statement from MakeMyTrip Ltd.

In other recent news, MakeMyTrip Limited reported impressive fourth-quarter results, with revenue rising 21% year-over-year to $245.5 million, surpassing analyst expectations. The company also posted adjusted earnings per share of $0.42, exceeding projections. Gross bookings increased 25.2% year-over-year, reaching $2.55 billion, highlighting the strength of its platform and brand popularity. In a related development, MakeMyTrip announced a share repurchase agreement with Trip.com Group, aiming to buy back a significant portion of Trip.com’s Class B shares. This move, funded by issuing new equity and convertible debt, could reduce Trip.com’s stake in MakeMyTrip to below 20%. Analysts at Citi view this as a potential step toward an India IPO. Furthermore, Goldman Sachs reaffirmed its Buy rating on MakeMyTrip, raising the price target to $126, citing strong revenue growth and robust travel demand. The company’s strategic focus on volume growth and capital allocation has been positively received by analysts, who anticipate continued growth.

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