#PrideHotelsIPO #DRHP #SEBI #HotelChain #IndianHospitality #CapitalMarkets #MotilalOswal #JMFinancial #IPOIndia
New Delhi — Pride Hotels Limited, a well-established homegrown Indian hospitality brand, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). Headquartered in New Delhi, the company is recognized as the sixth-largest hotel chain in India based on chain-owned inventory within the upscale, upper midscale, and midscale segments, according to a Horwath Report.
The IPO is structured to raise capital through a combination of a fresh issue of equity shares and a significant Offer for Sale (OFS).
IPO Structure and Proceeds
The public offer includes two main components:
- Fresh Issue: An issue of equity shares aggregating up to ₹2,600.00 million (₹260 crores).
- Offer for Sale (OFS): A sale of up to 39,239,446 equity shares of face value ₹5 each by the promoter and promoter group selling shareholders.
The net proceeds from the fresh issue will be utilized by Pride Hotels for three primary objectives:
- Funding capital expenditure toward the renovation of existing hotels.
- Repayment and prepayment in full or part of certain outstanding borrowings.
- General corporate purposes.
The OFS component involves the sale of shares by multiple promoter selling shareholders, including Sureshchand Premchand Jain (up to 5,963,978 shares), Meena Sureshchand Jain (up to 2,205,030 shares), and Satyen Suresh Jain (up to 5,344,740 shares), along with other promoter group entities.
Pre-IPO Placement Option
The company also has the option to conduct a Pre-IPO Placement in consultation with the Book Running Lead Managers (BRLMs) for an aggregate amount not exceeding ₹520 million (₹52 crores). If this placement is successful, the amount raised will reduce the size of the fresh issue component, provided the offer complies with the relevant SEBI regulations. The Pre-IPO Placement, if undertaken, will not exceed 20% of the fresh issue size.
Company Operations and Portfolio
Pride Hotels and Resorts boasts over 38 years of experience in the hospitality industry, operating and managing a diversified chain of hotels and resorts under its primary brand.
Its current operational portfolio consists of 2,723 rooms across 34 operational hotels and resorts across India. This portfolio is divided into:
- Owned Portfolio: Seven hotels and resorts, comprising 1,136 rooms.
- Managed Portfolio: 27 hotels and resorts managed under hotel management agreements, comprising 1,587 rooms.
The company’s equity shares are proposed to be listed on the BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE).
The issue is being managed by Motilal Oswal Investment Advisors Limited and JM Financial Limited, who are acting as the Book Running Lead Managers.
#PrideHotelsIPO #DRHP #SEBI #HotelChain #IndianHospitality #CapitalMarkets #MotilalOswal #JMFinancial #IPOIndia
