Bharat Hotels has filed its draft red herring prospectus with the Securities and Exchange Board of India (Sebi) for a public issue of 1.2 crore equity shares with a face value of Rs 10 per share. | |
| The issue price is to be determined through a 100 per cent book-building process. The price band for this offer is yet to be determined. |
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| Sixty per cent of the issue will be offered to qualified institutional buyers, 10 per cent to non-institutional investors and the remaining 30 per cent to retail investors. The issue will constitute up to 14.3 per cent of the fully diluted post-issue equity capital of the company. |
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| Kotak Mahindra Capital Co, DSP Merrill Lynch and Deutsche Equities India have been appointed as the book-running lead managers to the issue. |
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| Earlier this month, Lalit Suri, chairman and managing director, Bharat Hotels, had said that he wanted to raise Rs 600 crore from an initial public offering for expanding his five-star luxury brand, The Grand, into Hyderabad, Amritsar, Jaipur, Chandigarh and Noida. Requiring Rs 1,100 crore for these projects, Suri will raise the remaining Rs 500 crore from 1:1 debt equity ratio. |
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| Suri has already identified the sites for these hotels, and the ones at Jaipur and Noida belong to the government. He is also in an advanced stage of negotiation for a property in Chennai. |
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| Speaking on the public issue, Suri said, "We are in an expansion mode due to the buoyancy in the tourism sector." |
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