MakeMyTrip, the online travel booking company listed on Nasdaq, has won approval from India’s market regulator to take its India subsidiary public. The Securities and Exchange Board of India approved the initial public offering of MakeMyTrip (India) Ltd, Business Standard reported.
The company, based in Gurugram, in northern India, filed its draft offer papers in July through the regulator’s confidential route. The regulator issued its final observations on November 6, which lets the company proceed with preparations for the share sale. The size of the offering and the listing date have not been announced.
A sale of existing shares, not new money for the India business
The offering is expected to be a sale of existing shares by the Nasdaq-listed parent and a wholly owned subsidiary, according to the company’s filing with the Nasdaq. The India business will raise no new capital through it. MakeMyTrip (India) will remain a subsidiary after the listing, and its results will still be consolidated with the parent’s.
The parent expects the listing to “enhance its brand visibility and support MMT India’s ability to incentivise and promote talent in a competitive technology recruitment landscape,” the filing stated. It plans to use the proceeds for long-term growth, acquisitions and repurchases of its own securities, including convertible securities.
Why this matters
A company listed in the United States is choosing to list its main operating business in India as well. The parent keeps control and consolidates the results, while a separate listing gives the India business its own share price, which the company says will help it compete for technology talent at home.
