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Juniper Hotels Ltd. advanced in Mumbai after an initial public offering that raised $217 million, the largest on record by a hotel developer and operator in the country.

Shares in the Mumbai-based company, which operates seven hotels and serviced apartments under the Hyatt brand, rose as much as 6.6% to traded as high as 383.85 rupees. They were sold at 360 rupees each, the top of a marketed range that started at 342 rupees. 

Juniper Hotels is taking advantage of an equities frenzy in the South Asian nation that’s boosted valuations and supported a jump in several small-to-mid sized IPOs. The IPO was the second-biggest listing domestically this year and the largest among nine new share sales by hoteliers in India since 1995, Bloomberg-compiled data show. 

Funds backed by Goldman Sachs Group Inc., Fidelity and HSBC Holdings Plc are among anchor investors to IPO. Final demand for the stock was more than twice the number of shares available in the offering, according to data provided to local exchanges last week. 

Juniper is poised to benefit from a “demand-supply mismatch” that’s playing out for hotel rooms in India as growth in foreign tourists buoys the hospitality sector, according to Manan Goyal, an analyst with Mumbai-based Anand Rathi Shares and Stock Brokers Ltd. He recommended clients to subscribe to the IPO and hold the stock for a longer term.

Before Juniper Hotel’s debut, four hotel stocks that listed in the country over the past ten years rose by an average 29% in their first day of trade, Bloomberg-compiled data show. Apeejay Surrendra Park Hotels Ltd., which began trading on Feb. 12 after a $111 million new share sale, is up over 40% since the first session. 

Juniper Hotels aims to use money raised from the share sale to repay some debt and for general corporate purposes, according to the prospectus. CLSA India Ltd., ICICI Securities Ltd. and JM Financial Ltd. are managers in the IPO. 

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