MakeMyTrip raising around $75M through fresh issue; product head Amit Somani quits -------------------------------------------------------------- NASDAQ-listed Indian online travel services firm MakeMyTrip Ltd (MMT) is looking to raise up to $75 million in fresh capital by selling 3 million shares, the company said on Monday. The overall issue is worth a little over $110 million of which around $35 million will go to some existing shareholders who have offered to sell 1.5 million shares together. It said the money will be used to expand operations by acquiring or investing in strategic businesses or assets that complement its service and product offerings, to invest in enhancing technology, as well as for working capital and other general corporate purposes. It added that at this time, it has not entered into any agreement or commitment with respect to any material acquisitions or investments. The selling shareholders include a few top management executives such as co-founder Deep Kalra as one of the venture capital investors Sierra Ventures. Sierra Ventures had spent a little less than $6 million to buy shares a few years before MakeMyTrip went public in 2010. It had bought bulk of the shares at $2 apiece but later also bought more shares at around $5 a share. Given the current market price, which could also be an indicative price at which the shares are sold in this offering, it would part exit at 10x, as per VCCircle estimates.
Posted on: Tue, 11 Mar 2014 12:00:01 +0000
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