MakeMyTrip files for India listing as parent eyes cash raise
MakeMyTrip has filed for an Indian IPO of its domestic unit, a move that will raise capital for the Nasdaq-listed parent and could eventually create a dual-listed structure to capture local valuation premiums.
MakeMyTrip has confidentially filed a draft red herring prospectus with Indian markets regulator SEBI to list its domestic subsidiary, 15 years after the online travel giant debuted on the Nasdaq. The pre-filed documents were also submitted to the BSE and NSE. The company has not disclosed the size or valuation of the proposed issue, utilising a confidential pre-filing route that has become standard for large issuers looking to avoid early market pressure.
The offering will be structured primarily as an offer for sale, meaning existing shareholders will offload shares rather than raising fresh capital for the Indian business. Equity will be sold by the Nasdaq-listed parent MakeMyTrip Limited and its unit, ibibo Group Holdings. "Upon completion of the proposed initial public offering, MMT India will continue to be a subsidiary of MakeMyTrip and will be included in MakeMyTrip's consolidated financial statements," the company said in a US SEC filing dated July 17.
Because the proceeds will flow to the selling shareholders, the listing serves as a liquidity event and cash-raising mechanism for the parent group rather than a primary capital injection. MakeMyTrip indicated the funds could be deployed towards long-term expansion, inorganic growth, or the repurchase of different classes of securities, including convertibles. The company also noted it may explore strategic alternatives over the medium term, subject to regulatory approvals.
The filing teased a potentially significant structural shift for the company's equity. MakeMyTrip and its Indian subsidiary are evaluating options to create a security at the Indian level that is fungible and listed across both Indian and US capital markets. If approved by regulators, such a dual-listed structure would give investors greater flexibility and wider market access, while potentially allowing the company to capture the valuation premiums typical of Indian tech listings.
Beyond the balance sheet, the company expects the local listing to boost brand visibility and help it attract and retain technology talent in a competitive hiring environment. Kotak Mahindra Capital, Axis Capital, JPMorgan India and Morgan Stanley India have been appointed as book-running lead managers for the issue.
