Online travel giant MakeMyTrip has successfully raised $3.1 billion through a combination of equity and debt offerings, as confirmed by Morgan Stanley. A significant portion of this funding, $3 billion, is earmarked for a share buyback from Trip.com Group, formerly Ctrip, reducing their stake from 45.34% to 19.99%. This financial maneuver also sees a reduction in Trip.com’s board presence, from five to two directors.
The capital raise includes an offering of 18,400,000 ordinary equity shares priced at $90 each, alongside five-year convertible senior notes. According to Kamal Yadav at Morgan Stanley, this represents the largest concurrent offering of its kind in the APAC region since 2022. This strategic shift occurs amidst concerns raised by EaseMyTrip regarding potential data security risks related to MakeMyTrip’s Chinese shareholding, allegations MakeMyTrip has refuted. Deep Kalra and Rajesh Magow, MakeMyTrip’s co-founders, retain significant voting rights and board influence.
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