MakeMyTrip's subsidiary, which is listed on Nasdaq, has received permission from the regulator SEBI to conduct an Initial Public Offering (IPO), according to an update on the market regulator's website on Monday.
MakeMyTrip (India) Ltd (MMT India) had previously submitted draft documents to SEBI in July through a confidential channel. After reviewing these drafts, the regulator issued its final comments on November 6.
These comments from SEBI mark an important stage in the IPO process, allowing the company to continue preparations for the public offering, provided that applicable regulatory requirements are met.
The proposed IPO, according to the statement from the Gurugram-based company in the regulatory documentation for Nasdaq, will include the sale of equity in MMT India by its parent company MakeMyTrip and its wholly-owned subsidiary ibibo Group Holdings (Singapore) Pte Ltd.
The company also reported that after the completion of the proposed IPO, MMT India will remain a subsidiary of MakeMyTrip, and its financial results will continue to be consolidated with those of the parent company.
The statement indicated that MakeMyTrip expects the proposed IPO and listing of MMT India to increase brand awareness and support MMT India's ability to attract and promote talent in the competitive landscape of tech recruitment.
It is expected that the net proceeds obtained by MakeMyTrip and ibibo Group Holdings from the sale of MMT India shares will strengthen the financial position of the parent company. These funds will be directed towards long-term growth, strategic inorganic initiatives, and the repurchase of various classes of securities, including convertible securities, by MakeMyTrip.
