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Vatika Hotels buys back shares from Goldman for Rs 3 bn, plans IPO in Q3

The group has vigorous growth plans for all verticals in the coming years

Surajeet Das Gupta  |  New Delhi 

vatika hotels

Vatika Hotels, the hospitality arm of the Gurgaon-based real estate major Vatika group, has bought back shares held in it by US banking group for Rs 3 billion. Now owning 100 per cent of its equity, the company is planning to go for and the third quarter of the 2018 calendar year. In 2007, the Vatika group had raised Rs 9 billion in the form of equity. Goldman Sachs, the largest investor along with Baer Capital Partners had invested Rs 6 billion in the group, while had put in Rs 2 billion, and Rs 1 billion. further invested Rs 3 billion in in the form of compulsory convertible debentures (CCD) which in 2015 got converted into equity. GIC, another leading global investor that had put money in the Vatika group in 2014, remains invested in the group. Managing Director Gaurav Bhalla said: “In the following years, we have vigorous growth plans for all our verticals and aim to bring an by the third quarter of 2018.” The funds generated would be used to take advantage of the newly formed transit-oriented development (TOD) policy. The company plans to increase the capacity of Westin Gurgaon with 200 more rooms, along with additional expansion plans for the Westin resort by 40 keys located in Sohna. Apart from this, Vatika intends to invest in brownfield projects as well, and is currently seeking opportunities in the market.

The funds would also be used for the expansion of Vatika Business Centres & Enviro, a premium facility management company. Vatika Business Centre, India’s first premium business centre service provider, at present has 15 centres spread across New Delhi, Girgaon, Noida, Mumbai, Bengaluru, Chennai, Hyderabad and Pune. It covers over half a million sq ft of area in the country, facilitating more than 5,000 seats, and about 1,000 seats are under development. Backed by growth numbers and cashing in on the opportunities to expand, VBC aims to open 42 centres by the end of 2020. OIt also plans to go abroad with centres in Singapore, Dubai and HongKong. The group also owns Nukkadwala, the newest chain of quick service restaurants with 10 stores in the National Capital Region at present. It has plans to expand in foreign by soon opening stores in Dubai, London, and New York.

First Published: Fri, January 12 2018. 01:28 IST
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