Restaurant India News: Pride Hotels Gears Up for IPO with Fresh Issue and Offer for Sale of Over 39 Million Shares

Pride Hotels Limited, headquartered in New Delhi, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). According to the Horwath Report, the company is the sixth largest hotel chain in India in terms of chain-owned inventory within the upscale, upper midscale, and midscale segments. The offer includes a fresh issue of equity shares aggregating up to Rs 2,600.00 million (Rs 260 crore) and an offer for sale of up to 39,239,446 equity shares with a face value of Rs 5 each.

The offer for sale consists of equity shares by promoter selling shareholders, including 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. It also includes shares offered by promoter group selling shareholders such as Namrata Garg of up to 98,500 shares, Executive Housing Finance Co Limited of up to 2,386,183 shares, Pride Paradise & Development Private Limited of up to 683,720 shares, Pride Centre and Development Private Limited of up to 1,193,091 shares, Pride Orchards Private Limited of up to 662,828 shares, SP Realtors Private Limited of up to 2,518,748 shares, SP Capital Consultants Private Limited of up to 1,855,919 shares, and SP Capital Financing Limited of up to 3,267,900 shares.

Motilal Oswal Investment Advisors Limited and JM Financial Limited are the Book Running Lead Managers to the issue. The company plans to use the net proceeds from the fresh issue to fund capital expenditures for the renovation of existing hotels, to repay and prepay in full or in part certain borrowings, and for general corporate purposes.

Pride Hotels is a homegrown Indian hospitality group with over 38 years of experience. It owns, develops, operates, and manages a diversified portfolio under the “Pride Hotels and Resorts” brand. The company operates 34 hotels and resorts with a total inventory of 2,723 rooms across India. This includes seven owned properties with 1,136 rooms and 27 managed properties with 1,587 rooms through hotel management agreements.

The equity shares offered through the IPO are proposed to be listed on the BSE Limited and the National Stock Exchange of India Limited. The company may also consider a Pre-IPO Placement of up to Rs 520 million (Rs 52 crore) in consultation with the Book Running Lead Managers prior to filing the Red Herring Prospectus. If undertaken, the amount raised through this placement will be reduced from the fresh issue size in accordance with Rule 19(2)(B) of the SCRR, and the Pre-IPO Placement will not exceed 20 percent of the fresh issue.

The planned IPO represents a significant step for Pride Hotels as it aims to strengthen its financial position, modernize existing assets, and expand its presence in India’s competitive hospitality sector.