MakeMyTrip has successfully raised $3.1 billion through a mix of share sales and convertible bonds, this move is part of the company’s plan to reduce the ownership stake held by its Chinese investor, Trip Group. The deal, finalized just days after the announcement, is now the largest capital raise by any new-age tech company in Asia-Pacific since Paytm’s IPO in 2021.
The Indian travel platform, headquartered in Gurugram, sold 18.4 million new shares at $90 each. This generated $1.66 billion from its primary equity offering. The share price was slightly lower than its June 17 closing price of $91.49. Another $1.4 billion came from a five-year convertible note, which carries zero interest and includes a 35% conversion premium.
MakeMyTrip Wants to Cut Chinese Stake
The funds raised will not go towards expanding the business or building operations. Instead, MakeMyTrip plans to use the money solely to repurchase shares from Trip Group. This is a key step in changing the company’s ownership structure and reducing dependence on Chinese investors.
As per filings made with the U.S. Securities and Exchange Commission (SEC), Trip Group’s stake will now fall from 45.95% to somewhere between 16.9% and 19.99%. Even after this reduction, Trip Group will continue to be the largest minority investor in MakeMyTrip.
Deal Structure and Support
Morgan Stanley led the entire fundraising as the primary bookrunner and stabilization agent. Kamal Yadav, Managing Director at Morgan Stanley, confirmed the pricing and structure in a LinkedIn post. The offering was called the largest dual raise in Asia-Pacific since 2022, combining equity and convertible bonds into a single transaction.
Originally, MakeMyTrip had planned to issue 14 million shares, but due to strong investor interest, the company expanded the offer to 18.4 million shares. The agreement with Trip Group to buy back the shares was signed on June 16, just one day before the company formally disclosed its fundraising plans.
Ownership Shift in Progress
Although MakeMyTrip has not yet released an official public statement confirming the deal’s closure, full regulatory filings have been submitted. This move marks a strategic shift in control, allowing MakeMyTrip to gain greater independence from its foreign investor while maintaining a strong financial position.
