Hotel Polo Towers Files for Rs 300 Crore IPO, Expands Hospitality Footprint
Hotel Polo Towers has filed its Draft Red Herring Prospectus with SEBI for an IPO to raise up to Rs 300 crore. The offering includes a fresh issue of equity shares and an offer for sale of up to 71.2 lakh shares by promoters. The company operates 9 hotels and resorts with 425 keys, 17 on-premise cafés and restaurants, and 2 standalone cafés under the 'Polo' and 'Max' brands. Equirus Capital and Motilal Oswal Investment Advisors are managing the IPO.
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Hotel Polo Towers, a prominent player in the hospitality sector, has taken a significant step towards going public by filing its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company is looking to raise up to Rs 300 crore through an initial public offering (IPO), marking a notable development in the Indian hospitality industry.
IPO Structure and Details
The proposed IPO comprises two components:
- A fresh issue of equity shares worth up to Rs 300 crore
- An offer for sale (OFS) of up to 71.2 lakh shares by existing promoters
The OFS participants include key promoters:
- Kishan Tibrewalla
- Prem Tibrewalla
- Deval Tibrewalla
- Kishan Tibrewalla HUF
The acquisition costs for the shares being offered in the OFS range between Rs 0.14 and Rs 0.35 per share, indicating a potentially significant value appreciation since the initial acquisition by the promoters.
Management of the Offering
Hotel Polo Towers has appointed two reputable financial institutions to manage the IPO:
- Equirus Capital Private Limited
- Motilal Oswal Investment Advisors Limited
These experienced advisors are expected to guide the company through the complex process of going public.
Company Profile and Operations
Hotel Polo Towers has established a strong presence in the hospitality sector, particularly in the northeastern, eastern, and northern regions of India. The company's portfolio includes:
- 9 hotels and resorts
- A total of 425 keys (rooms)
- 17 on-premise cafés and restaurants
- 2 standalone cafés
The company operates under two primary brands:
- 'Polo'
- 'Max'
This diverse range of properties and dining establishments showcases Hotel Polo Towers' commitment to providing varied hospitality experiences across different market segments.
Industry Implications
The decision by Hotel Polo Towers to go public comes at a time when the Indian hospitality sector is showing signs of recovery and growth post-pandemic. This IPO could potentially set a precedent for other regional hospitality chains considering similar moves to fuel their expansion plans.
As the IPO process unfolds, investors and industry observers will be keenly watching how the market responds to this offering from a company with a strong regional presence in some of India's emerging tourism destinations.
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