Pride Hotels Limited, promoted by veteran hotelier S. P. Jain has received observations from SEBI for its proposed IPO.
IPO structure: Fresh issue + offer for sale
The public offer of around Rs 1000 crore (as per sources) comprises a fresh issue of equity shares aggregating up to Rs. 260 crore by company (THE “FRESH ISSUE”) and an offer for sale (OFS) aggregating up to 39,239,44 equity shares by the Promoter Selling Shareholders (“OFFER FOR SALE”) with face value of ₹5 each equity share.
Use of proceeds: Renovation, debt repayment, corporate purposes
The Company proposes to utilize the net proceeds from the Fresh Issue towards (i) Funding capital expenditure towards renovation of existing hotels (ii) Repayment and prepayment in full of part of certain borrowings and (iii) General corporate purposes.
Current portfolio: 36 hotels across 32 cities
Pride Hotels’ operating portfolio includes 2,723 rooms across 34 hotels and resorts. This comprises seven owned properties with 1,136 rooms and 27 managed properties with 1,587 rooms. The chain has a presence across key Indian markets including Delhi, Nagpur, Ahmedabad, Kolkata, Pune, Chennai, Bengaluru, Indore, Bhopal, Rajkot, Jaipur, Udaipur, Dehradun, and Puri, spanning business, leisure, and pilgrimage destinations.
Asset-light expansion pipeline strengthens scale-up strategy
Pride Hotels is expanding through a management-led, asset-light model, with 21 upcoming hotels (1,500 keys) signed and 11 more properties (841 keys) under Letters of Intent. The portfolio is focused on full-service hotels across key business and travel hubs.
50+ F&B outlets add strength to hospitality proposition
In addition, Pride Hotels operates 50+ food & beverage outlets, including restaurants, bars, coffee shops, and bakeries, many of which have received prestigious dining and hospitality awards.
Proposed listing and lead managers
The Equity Shares that will be offered through the Red Herring Prospectus are proposed to be listed on the BSE Limited and National Stock Exchange of India Limited.
Motilal Oswal Investment Advisors Limited and and JM Financial Limited are the Book Running Lead Manager to the issue.
