MakeMyTrip surges further...market cap tops US$1bn

MakeMyTrip made its debut on the Nasdaq Stock Market on August 12, initially offering 5 million shares at US$14 each. Reaction was so strong the day it went public that the company then put more stock on the market, bringing its total initial offering to US$80.5mn.



Shares of MakeMyTrip shot up a whopping 89% on Aug. 12. MakeMyTrip gained US$7.46 or 39.2% on its maiden trading day. The stock rose as high as US$26.81 on Aug. 12 after opening at US$22. It lost about 7% in the next couple of sessions before surging again on August 16. A private research firm said it was the best debut for an IPO since November 2007.

The IPO was the first in the US market by an Indian company since 2006. MakeMyTrip recorded a net profit of US$1.3mn for the three months ended in June, CEO Deep Kalra was quoted as saying. However, it is yet to turn a full-year net profit in its decade-long history. At the closing price of US$31.95 on August 16, MakeMyTrip's 34,134,002 shares outstanding would put its market cap at US$1.09bn. The stake owned by SAIF Partners, MakeMyTrip's largest shareholders, would currently be valued at US$490mn. This is the first instance of an Indian Internet company crossing the US$1bn Market Cap milestone. The closest to come to this level was Rediff.com three years ago, when it had a market cap of around US$740mn.