Pride Hotels Receives SEBI Approval for Rs 1,000 Crore IPO
Pride Hotels has received SEBI approval for its Rs 1,000 crore IPO, comprising Rs 260 crore in fresh shares and 3.92 crore shares through offer-for-sale. The Mumbai-based hospitality chain operates 2,723 rooms across 34 properties and plans to use proceeds for hotel renovations and debt repayment. The company has grown from 19 hotels in 2019 to 34 currently, with 32 more properties in the pipeline for the next two to three years.
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Pride Hotels has received regulatory approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO) worth Rs 1,000 crore. The Mumbai-based hospitality chain received the regulatory nod on January 16, according to updates from the capital markets regulator.
IPO Structure and Fund Utilization
The public issue follows a mixed structure combining fresh equity and secondary share sales. The company filed its preliminary papers with SEBI in October and has now cleared the regulatory hurdle for its market debut.
| Component | Details |
|---|---|
| Total IPO Size | Rs 1,000 crore |
| Fresh Issue | Rs 260 crore |
| Offer for Sale | Up to 3.92 crore shares |
| Pre-IPO Placement | Rs 52 crore (under consideration) |
The net proceeds from the IPO will be utilized for capital expenditure towards renovation of existing hotels, debt repayment, and general corporate purposes. If the company proceeds with the pre-IPO placement worth Rs 52 crore, the fresh issue size will be adjusted accordingly.
Current Operations and Expansion Plans
Pride Hotels currently operates an extensive portfolio across the Indian hospitality sector. The company's operational footprint demonstrates significant growth trajectory over recent years.
| Operational Metrics | Current Status |
|---|---|
| Total Rooms | 2,723 rooms |
| Operational Properties | 34 hotels and resorts |
| Hotels in 2019 | 19 hotels |
| Pipeline Properties | 32 properties |
Renovation and Refurbishment Strategy
According to Pride Hotels Chairman & MD Sureshchand Premchand Jain, the company plans to deploy funds over the next 12 to 27 months for comprehensive upgradation of its owned portfolio. The renovation program will focus on six out of seven hotels in the company's owned portfolio, strategically located across major Indian cities.
The properties earmarked for renovation and refurbishment are situated in:
- New Delhi
- Ahmedabad
- Kolkata
- Bengaluru
- Pune
- Chennai
Growth Trajectory and Future Pipeline
Chief Executive Officer Satyen Jain highlighted the company's accelerated expansion plans, noting the substantial growth from 19 hotels in 2019 to the current 34 operational properties. The company has positioned itself for continued expansion with 32 additional properties in the development pipeline, expected to become operational over the next two to three years.
Market Listing and Advisory Team
Pride Hotels' shares are proposed to be listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The company has appointed Motilal Oswal Investment Advisors Ltd and JM Financial as the book-running lead managers for the IPO, ensuring professional management of the public offering process.
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