The Pride Hotel in plan to raise 200-250 cr IPO…
The Pride Hotels plans (S.P.Jain owned) to raise Rs 200-250 crore through initial public offering (IPO) to fund its expansion plans. The hotel chain plans to develop seven five-star hotels, including resorts.
- They chalked out Rs 800 crore expansion plan, of which, some would come through internal accruals and Rs 200-250 crore through IPO proceeds. For meeting the remaining fund requirements, the company is in talks with banks, financial institutions and private equity players.
- The Pride Hotels already has four five-star hotels located at Ahmedabad, Nagpur, Pune and Chennai and would be opening one more in Bangalore by the end of this calendar year. “Hotels at Mumbai, Goa and Alibaug are under construction and would be ready by 2010-11. After completion, the hotels would have an inventory of 1,000 rooms across the country. The firm plans to open seven five-star hotels and resorts and 15 Biznotels (business hotel).
- Through the IPO, Jain would be offloading 30 per cent stake in the company. They are looking for a price band of Rs 270 to Rs 300 per share.
The company would be submitting the draft offer document with the Securities and Exchange Board of India in couple of months. The company has also appointed Edelweiss as one of the lead managers for the IPO
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