MakeMyTrip's Indian Subsidiary Gets SEBI Approval for IPO

According to a Business Standard report, the India-based subsidiary of Nasdaq-listed travel booking platform MakeMyTrip has received SEBI's approval to launch an Initial Public Offering (IPO). This information came to light according to an update available on the market regulator's website on Monday.

MakeMyTrip (India) Limited, i.e., MMT India, had submitted draft papers to SEBI through the confidential route in the month of July. After completing the process of reviewing the draft documents, final observations were issued by the regulator on 6 November.

These observations by SEBI are a very important milestone in the IPO process, allowing the company to move forward with preparations for its public issue, subject to the applicable regulatory requirements.

In a regulatory filing with Nasdaq, the Gurugram-headquartered company stated that the proposed IPO is expected to involve the sale of equity shares of MMT India by its parent company MakeMyTrip and its wholly-owned subsidiary ibibo Group Holdings (Singapore) Private Limited.

It was stated earlier that even after the completion of this proposed IPO, MMT India will remain a subsidiary of MakeMyTrip and its financial results will continue to be consolidated with the parent company's results.

As per the filing, MakeMyTrip hopes that the proposed initial public offering and listing of MMT India will enhance its brand visibility and support MMT India's ability to encourage and promote talented youth in the competitive technology recruitment landscape.

It is expected that the net proceeds received by MakeMyTrip and ibibo Group Holdings from the sale of shares in MMT India will further strengthen the parent company's cash position.

The filing further mentioned that these funds will be used for long-term growth, strategic inorganic initiatives, and the repurchase of various classes of securities, including convertible securities.