Flight Control: MakeMyTrip Buys Back Power from Trip.com in $3B Deal

In a record move for India's e-travel sector, MakeMyTrip announced a massive $3 billion share buyback by Chinese-based firm Trip.com Group, reducing the latter's stake from 45.34% to 19.99%. The transaction, funded through a mix of equity and convertible senior notes, is the largest capital raise ever by an internet listed Indian company.

 

The buyback comes against the background of growing distrust of Chinese investment in Indian tech companies, especially in the wake of allegations of data security risk with foreign board domination. MakeMyTrip referred to such an allegation as "motivated accusations" but is clearly moving to regain control on a strategic basis.

 

Highlights:

Co-founders Deep Kalra and Rajesh Magow retain 4.6% voting rights and three independent director appointment rights2

 

The move is seen as a strategic move to enhance MakeMyTrip's independence and governance model, and mirror confidence in its long-term growth. The company experienced record gross bookings of $9.8 billion and profit of $95.3 million for FY25.

 

Relevant Sources: Economic Times, Mint, Trip.com Group, MSN