This hospitality chain is planning ₹1,000cr IPO by December
What's the story
Pride Hotels, a leading hospitality chain, is gearing up for its initial public offering (IPO) by December. The company hopes to raise around ₹1,000 crore through the public issue. This comes as part of its aggressive expansion strategy in leisure, wedding and corporate events, and pilgrimage destinations. CEO Satyen Jain confirmed the development in an interaction with PTI.
Growth trajectory
Rapid expansion with new hotel openings
In the last year alone, Pride Hotels has opened nine new hotels, taking its total portfolio to 40 properties.
This includes eight owned and 32 managed hotels.
The company has also signed contracts for another 32 hotels, which are likely to be operational in the next 1.5 to two years. This would further expand their portfolio to around 72 properties.
Strategic focus
Focus on key segments for growth
Jain said that Pride Hotels is focusing on four segments: deepening its presence in existing markets, targeting large wedding and MICE hotels, entering new leisure destinations, and expanding in pilgrimage.
He noted that pilgrimage destinations are particularly attractive due to their potential for repeat business.
Jain also said younger consumers are increasingly prioritizing experiences over material possessions, which bodes well for the hospitality industry.
Capital markets
Details of the upcoming IPO
Pride Hotels plans to launch its IPO by December, with an issue size of around ₹1,000 crore.
The public issue will consist of a fresh issue of shares worth ₹260 crore and an offer for sale of up to 3.92 crore shares by promoters and promoter group entities.
The proceeds from the IPO will be used for capital expenditure on hotel renovations, debt repayment, and general corporate purposes.