Sebi clears MakeMyTrip India's IPO, with parent selling shares

India's market regulator has cleared the runway for MakeMyTrip's India business to go public. Sebi issued its final observations on the draft papers on November 6, according to an update on the regulator's website on Monday — the green light that lets the company move ahead with its listing plans. MMT India had slipped its draft documents to Sebi in July through the confidential route.

The IPO won't raise fresh capital for the Gurugram-headquartered travel company. It's structured as a sale of equity shares by parent MakeMyTrip and its wholly-owned subsidiary ibibo Group Holdings (Singapore) Pte Ltd, MakeMyTrip told Nasdaq in a regulatory filing.

MakeMyTrip stays in charge after the listing. The Nasdaq-listed parent said MMT India will remain its subsidiary, with the India unit's financial results continuing to be consolidated into its own books. The parent expects the listing to sharpen its brand visibility and help MMT India recruit and reward talent in a fiercely competitive tech hiring market, according to the filing.

The cash from the share sale lands with the sellers, not MMT India. MakeMyTrip said the net proceeds to it and ibibo Group Holdings should beef up its cash position, and it plans to put the money toward long-term growth, strategic inorganic moves, and repurchases of various classes of securities, including convertible ones.