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MakeMyTrip to raise over $2.5 billion to slash China-based Trip.com’s stake in company

While MakeMyTrip did not mention the reason behind its decision to slash Trip.com’s stake, the decision comes at a time when there is clamour in India for minimising business relations with companies and investors from countries like China and Turkey—which are seen as supporters of Pakistan—following last month’s military India-Pakistan military conflict.

According to MakeMyTrip’s SEC filings, it is offering 14 million shares, which could help the company raise around $1.4 billion.

Online travel agency MakeMyTrip has announced a fund-raise of over $2.5 billion through sale of shares and convertible bonds with the objective of significantly reducing China-based Trip.com Group’s stake in the company, per company filings with the US Security Exchange Commission (SEC). Gurugram-based MakeMyTrip is listed on the Nasdaq in the US.

While MakeMyTrip did not mention the reason behind its decision to slash Trip.com’s stake, the decision comes at a time when there is clamour in India for minimising business relations with companies and investors from countries like China and Turkey—which are seen as supporters of Pakistan—following last month’s military India-Pakistan military conflict. Calls for cutting ties with Chinese investors and companies have also been there due to tensions between India and China following the border clashes in Ladakh’s Galwan Valley in 2020. Last month, rival online travel agency EaseMyTrip’s founder Nishant Pitti had also taken potshots at MakeMyTrip over significant Chinese investment in the latter.

According to MakeMyTrip’s SEC filings, it is offering 14 million shares, which could help the company raise around $1.4 billion. Additionally, it is also looking to raise $1.25 billion through sale of zero-coupon convertible senior notes (bonds), with an option to offer senior notes worth around a couple of hundred million dollars more. The proceeds will be used to buyback a portion of its outstanding Class B shares held by Trip.com. Following the exercise, Shanghai-based Trip.com’s voting power in MakeMyTrip will reduce to around 20 per cent from over 45 per cent currently.

“MakeMyTrip is a proud Indian company, founded by Indians, headquartered in India, and trusted by millions of Indian travellers for over 25 years. We are a publicly listed company on the Nasdaq, with a diverse shareholder base spanning the globe. Our operations are independent, steered by a seasoned team of Indian professionals who bring a wealth of expertise and a commitment to excellence. We adhere to stringent corporate governance standards, fully complying with all applicable Indian laws and data privacy frameworks. We don’t comment on malicious or motivated accusations and remain focused on offering our best services to our customers as a responsible Indian corporate,” MakeMyTrip had said in a statement last month, after Pitti posted on social media about MakeMyTrip’s Chinese shareholding.

Sukalp Sharma

Sukalp Sharma is a Senior Assistant Editor with The Indian Express and writes on a host of subjects and sectors, notably energy and aviation. He has over 13 years of experience in journalism with a body of work spanning areas like politics, development, equity markets, corporates, trade, and economic policy. He considers himself an above-average photographer, which goes well with his love for travel. ... Read More

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