Top News

In a significant strategic move, travel booking giant MakeMyTrip has unveiled plans to raise over $2.5 billion through a combination of share sales and convertible bonds, as detailed in its NASDAQ filings.

The primary objective of this massive fundraising is to substantially reduce the ownership held by China-based Trip.com Group in the company, reported PTI.

Geopolitical Tensions Drive Strategic Shift

This development comes at a time when India is witnessing growing calls to limit business engagements with investors and companies from countries like China and Turkey, both of which are perceived as sympathetic towards Pakistan.

The push for reduced foreign influence intensified after last month’s military confrontation between India and Pakistan. Fueling the controversy, EaseMyTrip’s founder Nishant Pitti recently raised concerns about MakeMyTrip’s links to China, pointing out that "5 out of its 10 board of directors have direct ties to China."

Trip.com’s Influence Set to Diminish

Under the terms of the share repurchase plan, MakeMyTrip will use proceeds from both the public offering and what it calls the Concurrent Notes Offering to buy back a significant portion of the Class B shares currently owned by Trip.com.

This transaction will see Trip.com's voting power shrink from 45.34 per cent to 19.99 per cent, while its board nomination rights will drop from five directors to two, as outlined in the Terms of Issue.

MakeMyTrip disclosed that as part of this offering, it is issuing 14,000,000 ordinary shares, each with a par value of $0.0005. Alongside this, the company is offering $1.25 billion in convertible senior notes, with an option for initial purchasers to acquire an additional $187.5 million, collectively referred to as the Concurrent Notes Offering.

Trip.com Previously Held Full Class B Ownership

The company's NASDAQ filing further reveals that as of March 31, 2025, Trip.com owned 100 per cent of MakeMyTrip's issued and outstanding Class B shares, along with 15.05 per cent of the combined ordinary and Class B shares, giving it an overall voting power of 45.34 per cent.

On June 16, 2025, a formal share repurchase agreement was signed between MakeMyTrip and Trip.com, under which Trip.com has agreed to sell part of its Class B holdings at the same price per share as the public offering, minus underwriting discounts and commissions.

While ordinary shares and Class B shares generally carry similar rights, the Class B shares are subject to specific conditions set forth in the company’s Terms of Issue.