Makemytrip to raise Rs 470 cr in US IPO

Online travel company Makemytrip is going to raise $100 million (Rs 470 crore) on the Nasdaq Stock Market. Makemytrip would be the first Indian company in four years to hold its initial public offering (IPO) in US.

According to Bloomberg data, Makemytrip is the first to list in the US after Mumbai-based back-office services provider WNS Holdings Ltd raised $255 million in July 2006. Makemytrip has filed a registration statement with the Securities and Exchange Commission of the US for the proposed IPO.

Morgan Stanley will be the sole book running manager. Oppenheimer and Pacific Crest Securities LLC will be co-managers.

The Gurgaon-based company has a target to achieve sales of Rs 3,800 crore by the end of March 2011. It is the largest in the online travel business in India in terms of gross bookings for 2009, according to PhoCus Wright, a market research company. The travel company has two international offices in New York and San Francisco, beside 20 offices across India.

Deep Kalra founded MakeMyTrip in April 2000. The company had started its business by tapping into the US-India travel market. It launched its India operations in 2005. The company claims a market share of 50 per cent in online sales of the travel market.