MakeMyTrip weighs listing via IDRs

MUMBAI: Nasdaq-listed travel company MakeMyTrip (MMT) is weighing the benefits of listing its Indian arm via Indian Depository Receipts (IDRs) rather than a traditional initial public offering (IPO), two people familiar with the matter said on the condition of anonymity.

- Agnidev Bhattacharya

“An IDR structure is on the table, being viewed as a method to manage tax obligations that would be triggered by the Mauritius-based parent entity—MakeMyTrip Ltd—during a secondary sale of shares in a domestic IPO,” said the first person.

The development follows the company’s reaffirmation of its strategic priorities on 16 March, including plans for a potential listing of its India business after the consolidation of its brands, such as RedBus India, under MakeMyTrip (India) Pvt. Ltd.

The firm provides flight, hotel, and bus bookings through its platforms, including Goibibo.

Experts say the move may have been driven by the 15 January Supreme Court ruling in the Tiger Global-Flipkart tax case, which held that a Mauritius-based holding company participating in an offer for sale (OFS) in an Indian IPO would be liable to pay capital gains tax in the country on such transactions.