MakeMyTrip valuation doubles after the US debut

One of India's largest online travel companies, MakeMyTrip saw its market valuation nearly double to $902.8 million on its debut trade in the US market.

MakeMyTrip was listed on the Nasdaq, the tech-heavy US bourse yesterday and on its debut trade shares of the company shot-up by 88.93 per cent over the IPO price of $14 a piece.

MakeMyTrip that raised $70 million through its maiden initial public offering of 5 million shares in the US market ended its first day of trade at $26.45 per share.

At yesterday's closing price, the Gurgaon-based company is valued worth $902.84 million in contrast to its valuation of $477.87 million just a day earlier.

Analysts said the 'stellar debut' of MakeMyTrip was an encouraging event for many Indian firms, planning a listing in the US.

"The huge response to MakeMyTrip shares shows investor confidence towards smaller issues also", said a Delhi-based analyst.

The company plans to utilise the proceeds from the sale of shares to expand its operations in strategic businesses as well as for working capital and other corporate purposes.

The company's services and products, include booking air tickets, customised holiday packages, hotels, rail and bus tickets, car hire and facilitating access to travel insurance.