MakeMyTrip to raise over USD 2.5 billion to cut Chinese firm Trip.com's stake

New Delhi: Travel booking major MakeMyTrip has announced a fundraise of over USD 2.5 billion through the sale of shares and convertible bonds with the objective of significantly reducing China-based Trip.com Group's stake in the company, according to filings with NASDAQ.

The Gurugram-headquartered NASDAQ-listed firm plans to use the net proceeds from the offering, as well as from the Concurrent Notes Offering, to repurchase a portion of its Class B shares previously acquired by Trip.com.

Notably, the move comes in the backdrop of calls 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 India-Pakistan military conflict.

Rival travel agency EaseMyTrip's founder Nishant Pitti had last month turned up the heat on MakeMyTrip over the alleged Chinese ownership of the latter, saying 5 out of its 10 board of directors have direct ties to China.

Upon successful execution of the share repurchase exercise, Trip.com's total voting power in the company is reduced from 45.34 per cent to 19.99 per cent, and its board nomination rights will be reduced from five directors to two, in accordance with the Terms of Issue, MakeMyTrip stated.

In the NASDAQ filing, the company also informed that it is offering 14,000,000 ordinary shares, par value USD 0.0005 per share, in this offering.

"Concurrently with this offering, we are offering, USD 1.25 billion aggregate principal amount of convertible senior notes, plus up to USD 187.5 million aggregate principal amount of our convertible senior notes if the initial purchasers in the convertible notes offering exercise in full their option to purchase additional convertible senior notes, which we refer to as the Concurrent Notes Offering," it stated.

Generally, Class B shares have the same rights and preferences as the ordinary shares except as specifically set forth in the Terms of Issue governing the Class B shares, or the Terms of Issue.

"As of March 31, 2025, Trip.com beneficially owned 100 per cent of our issued and outstanding Class B Shares and 15.05 per cent of our aggregate ordinary shares and Class B shares, together representing an aggregate of 45.34 per cent of the total voting power in our company," MakeMyTrip stated.

On June 16, 2025, MakeMyTrip entered into a share repurchase agreement with Trip.com pursuant to which the latter has agreed to sell, and the former has agreed to purchase, a portion of the Class B shares at a price per share equal to the public offering price of each ordinary share, after deducting underwriting discounts and commissions.