Pride Hotels may go for IPO to raise Rs 200 crore
Hospitality major Pride Group of Hotels is planning an IPO of around Rs 200 crore in the first quarter of FY11, besides, tapping private equity funds to fuel its Rs 800 crore expansion through 2015.
“We plan to tap the capital market in mid 2010 to the tune of rs 175-200 crore. Besides, we are eying PE investments. We have lined up a Rs 800 crore expansion through 2015 by when we should have 30 hotels under our fold,” Pride Hotels' chair man, S P Jain, said.
The group, which has 10 hotels at present, is eyeing PE funding of Rs 45 crore and is in discussions with a few players for the same. Around Rs 250 crore will be generated through internal accruals while the remaining will come through term loans, Jain said.
The company has already obtained PE funding of Rs 55 crore from Kotak Realty Fund and a Mauritius-based fund, he said.
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