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Investing.com -- MakeMyTrip Limited (NASDAQ:MMYT) stock dropped 12.4% following the announcement of a share repurchase agreement with Trip.com Group Ltd (NASDAQ:TCOM), whose shares edged up 0.8%.
MakeMyTrip plans to repurchase a portion of its Class B shares from Trip.com, using proceeds from newly announced offerings of convertible senior notes and ordinary shares. The company has commenced a proposed primary offering of 14 million ordinary shares, with underwriters having a 13-day option to purchase up to 2.1 million additional shares.
Simultaneously, MakeMyTrip announced a private offering of 0.00% convertible senior notes due 2030 with an aggregate principal amount of $1.25 billion to qualified institutional buyers. Initial purchasers will have an option to buy up to an additional $187.5 million in notes.
The repurchase price will be based on the net offering price of the primary equity offering, after deducting estimated underwriting discounts and commissions for both offerings. This transaction follows a share repurchase agreement entered between the companies on June 16, 2025.
For Trip.com, the deal appears aimed at optimizing its investment portfolio and enhancing shareholder returns, while MakeMyTrip will use the entire net proceeds from both offerings to fund the repurchase.
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