MakeMyTrip’s Nasdaq-listed parent has injected additional funds in the tour and travels portal and aggregator through a rights issue, valuing the Indian operating company at around Rs 26,000 crore.
The parent company infused around Rs 128 crore over the past six months through subscriptions to the rights issue, documents filed by MakeMyTrip India with the Registrar of Companies show.
As per the documents filed with the RoC, a resolution passed by the board of directors of MakeMyTrip India in February 2018 gave its consent to the allotment of 3,23,649 equity shares at an issue price of Rs 1,000 to its holding company MakeMyTrip Limited Mauritius on a rights basis.
After the latest allotment, the local arm had issued a total of 26,63,82, 246 fully subscribed shares.
In December 2017, the board had agreed to the allotment of 9,63,137 equity shares at an issue price of Rs 1,000. “Consent of the board… is hereby accorded to the allotment of 3,23, 649 equity shares of Rs 10 each in the capital of the company… at an issue price of Rs 1,000 per share, including a premium of Rs 990 per share to its holding company MakeMyTrip Limited Mauritius on right basis,” stated a copy of the resolution passed by the board of directors of MakeMyTrip India in February this year.
Mohit Kabra, CFO at MakeMyTrip, said these were routine investments as the company is in an investment phase.
In its results for the quarter ended December 2017, MakeMyTrip Limited had reported a loss of $45.3 million compared to a profit of $16.6 million in the quarter ended December, 2016. It reported revenues of $172.5 million and had said its marketing and sales promotion expenses more than doubled to $109 million in the quarter ended December 31 2017, from $44.5 million in the quarter ended December 31 2016.
MakeMyTrip had said the primary drivers of this year-on-year increase in marketing and sales promotion expenditure included significant customer inducement and acquisitions programme expenses incurred to accelerate growth in their standalone hotel booking business and increase in brand advertisement expenses that was incurred in the quarter ended December 31, 2017, and the consolidation of marketing and sales promotion expenses of the ibibo group.
