Chalet Hotels Fluctuates On Stock Market Debut
Chalet Hotels Ltd. listed at a premium of 5 percent to Rs 294 apiece on the National Stock Exchange Ltd., compared to its issue price of Rs 280. Thereafter, the stock swung between gains and losses to hit an intraday low of Rs 250 before closing at Rs 291.72 apiece.
The Mumbai-based hotel operator’s initial public offering was subscribed around 1.57 times on its final day of bidding on Jan. 31. The Rs 1,690-crore offer saw maximum demand from qualified institutional investors. The price range was Rs 275-280 and it received bids for 6.49 crore shares.
The K Raheja Corp-promoted hotel developer is planning to raise Rs 950 crore as fresh issue, and offload 2.46 crore shares as offer for sale. The company raised around Rs 492 crore from 27 anchor investors including Fidelity Funds, Goldman Sachs India, HDFC Small Cap Fund.
Chalet Hotels IPO was the biggest in India in the last four months. It’s an owner, developer and asset manager of high-end hotels in key metro cities in India. It has five properties in Mumbai, Hyderabad and Bengaluru with 2,328 hotel rooms as of September last year. Chalet Hotels manages one property, while the remaining four are managed by Marriott. The company’s hotels are operated under brand name of JW Marriott, Westin, Marriott, Marriott Executive Apartments, Renaissance and Four Points by Sheraton.