New Delhi– Online travel company MakeMyTrip on Wednesday said it plans to raise $330 million (more than Rs 2,110 crore) through share sale and issuance agreements.
According to the online travel company, proceeds from the transactions will be used to fund business expansion, strategic investments, technology and product development, marketing and promotions, working capital and general corporate purposes.
The company elaborated that it has entered into a definitive share purchase agreements for a placement of its ordinary shares worth $165 million (the “Placement”).
However, the company did not disclose information about the investors for the placement of its ordinary shares.
“Under the terms of the share purchase agreements for the Placement, the company will issue 4,583,334 ordinary shares in the aggregate to investors at a price of $36 per ordinary share,” MakeMyTrip said in a statement.
“Simultaneously with the placement, MakeMyTrip also entered into share purchase agreements with Ctrip.com International (“Ctrip”) for the issuance of its ordinary shares to Ctrip and MIH Internet SEA Pte. a subsidiary of Naspers, for the issuance of the company’s Class B convertible ordinary shares (“Class B Shares”) to MIH, which transactions will generate an additional $165 million of gross proceeds to the company.”
The online travel company will issue 916,666 ordinary shares to Ctrip at a price of $36 per ordinary share and with MIH, it will issue 3,666,667 “Class B Shares” to MIH at a price of $36 per “Class B Share”.
“The Class B Shares issued to MIH will be convertible into ordinary shares of the company on a one-to-one basis,” the statement said.
The company added that it expects the closing of “placement and the transactions” with Ctrip and MIH to occur on or around May 5, 2017.