Chalet Hotels’ Rs 1,690-Crore IPO Opens On Jan. 29
Chalet Hotels Ltd. is eyeing up to Rs 1,690 crore from the market through an initial public offering to invest in new businesses and pare its debt.
“It reduces our debt, reduces our interest outlay and therefore gives us more of free cash flows to invest in new businesses,” Sanjay Sethi, managing director and chief executive officer of the company, told BloombergQuint on the sidelines of their IPO launch press conference in Mumbai today. The company’s debt-to-equity ratio would come down from 5.17 as of September-end to 1 after the public offer, he said.
The IPO opens between Jan. 29-31 and the price band for the offer is fixed at Rs 275 to Rs 280 per share. 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 book-running lead managers to the issue are JM Financial, Axis Capital and Morgan Stanley.
The company owns four hotels and a co-located serviced residence, managed by third-parties such as JW Marriott, Westin, Marriott, Marriott Executive Apartments and Renaissance, which contributed to about 85 percent of its sales.
The company, Sethi said, will look at cities such as Pune, Chennai, Bengaluru and Hyderabad to acquire new hotels.
Watch the full interview here: