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Chalet Hotels Ltd, the owner, developer and asset manager of high-end hotels in key metro cities in India has opened up their 3 days IPO haul starting from today (i.e. 29/01/2019). The hotel chain plans to raise around Rs 1,640 crores through its initial public offering.
The proceedings from the IPO, which is the biggest in the country in the last four months, would be utilised to invest in new businesses and pare debt. Sanjay Sethi, Managing Director and Chief Executive Officer told a press outlet that the IPO “reduces our debt, reduces our interest outlay and therefore gives us more of free cash flows to invest in new businesses.”
Chalet Hotels Ltd, according to its filings will issue 5.86 crore equity shares at a price band of Rs 275-280. As per the upper-end of the price band, the hotel chain is valued at around Rs 5,741 crores. The IPO consists of an offer for sale and a fresh issue.
The promoter groups of the hotel chain will sell their shares worth Rs 691 crore whereas the firm is expecting to raise Rs 950 crores to pare debt and for general corporate purposes. Chalet Hotels which has five properties in Mumbai, Hyderabad and Bengaluru with 2,328 hotel rooms as of September 2018 wherein one property is managed by Chalet Hotels while the remaining four are managed by Marriott.
