The intial public offering (IPO) of Chalet Hotels Ltd., the hospitality business of K. Raheja Corp.,will open on January 29 and close on January 31. The issue is aimed at raising up to ₹1,641 crore. The IPO consists of a primary issue of ₹950 crore and an offer-for-sale of up to 24,685,000 equity shares amounting to approximately ₹691 crore. The selling shareholders include Ravi C. Raheja; Neel C. Raheja; K. Raheja Corp; Palm Shelter Estate Development and Ivory Properties and Hotels.
Price band
The price band has been fixed at ₹275 to ₹280 per equity share. At the lower band, the issue would raise ₹1,629 crore and at the upper band ₹1,641 crore.
Bids can be made for a minimum lot of 53 equity shares and in multiples of 53 equity shares thereafter.
Chalet Hotels is the owner, developer and asset manager of five star deluxe hotels, including the Renaissance Convention Centre, Powai, JW Marriott at Sahar, Mumbai, Marriott Bengaluru Whitefield, The Westin Hyderabad, and Four Points by Sheraton, Vashi. The company has a debt of ₹2,500 crore. Proceeds of the primary issue worth ₹720 crore would be used to retire a part of the debt, company officials said.
For FY18, the company reported net profit of ₹31 crore on a sales turnover of ₹929 crore. Neel C. Raheja, group president, K. Raheja Corp and non-executive director, Chalet Hotels said, “We have emerged as a leading hospitality player in India due to efficient management of properties and buying of land at much cheaper rates than others. And the journey will continue.”
Sanjay Sethi, managing director and CEO, Chalet Hotels said, “We are currently developing three hotels, including a W hotel in Mumbai and are looking for acquisitions to ramp up capacity rapidly.”
