Pride Hotels Limited, based in New Delhi, has filed its Draft Red Herring Prospectus (DRHP) with SEBI for an Initial Public Offering (IPO). The company ranks sixth in India in terms of chain-owned inventory in the upscale, upper midscale, and midscale segments. The offer comprises a fresh issue of equity shares aggregating up to `2,600.00 million (`260 crores) and an offer for sale of up to 39,239,446 equity shares of face value of 5 each.
The offer for sale includes sale of equity shares by Sureshchand Premchand Jain of up to 5,963,978 shares, Meena Sureshchand Jain of up to 2,205,030 shares, Satyen Suresh Jain of up to 5,344,740 shares, ASP Enterprises Private Limited of up to 4,964,350 shares, The Executive Inn Limited of up to 2,394,136 shares, Kopra Estate Private Limited of up to 3,049,010 shares, and Pride Plaza (I) Private Limited of up to 2,651,313 shares, and others as detailed in the Draft Red Herring Prospectus (The Promoter Group selling shareholders). Motilal Oswal Investment Advisors Limited and JM Financial Limited are acting as the Book Running Lead Managers to the issue. The company intends to list its equity shares on both the BSE and the National Stock Exchange (NSE).
As outlined in the DRHP, net proceeds from the fresh issue will be directed towards funding capital expenditure for hotel renovations, repayment or prepayment of certain borrowings, and general corporate purposes. The company may also consider a Pre-IPO placement of up to INR 520 million (INR 52 crore), which would reduce the size of the fresh issue if undertaken.
Founded over 38 years ago, Pride Hotels operates under the Pride Hotels and Resorts brand, with a diversified presence across India. Its current portfolio includes 34 operational hotels and resorts, comprising 2,723 rooms. This is split between seven owned properties with 1,136 rooms and 27 managed properties with 1,587 rooms under hotel management agreements. Through its IPO, Pride Hotels aims to strengthen its balance sheet, modernize its properties, and position itself more competitively within India’s fast-expanding hospitality sector, where demand for midscale and upscale branded hotels is witnessing robust growth.
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