Pride Hotels Limited, one of India’s leading homegrown hospitality chains, 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 ranked as the sixth-largest hotel chain in the country by chain-owned inventory across the upscale, upper midscale, and midscale segments.
The proposed IPO comprises a fresh issue of equity shares worth up to INR 2,600 million (INR 260 crore) along with an offer for sale (OFS) of up to 39,239,446 equity shares, each with a face value of INR 5. The OFS will include sales from promoters and promoter group shareholders, including Sureshchand Premchand Jain, Meena Sureshchand Jain, Satyen Suresh Jain, ASP Enterprises Pvt. Ltd., The Executive Inn Ltd., Kopra Estate Pvt. Ltd., Pride Plaza (I) Pvt. Ltd., and others as detailed in the DRHP.
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.
