The company currently owns only one hotel, Holiday Inn Airport Kolkata, and the entire proposed proceeds will be invested in the existing 137 room property for further expansion following excellent response since unveiling of this property, Dream Gateway Hotels director Shrayans Jain said here.
"We have arrived at the pricing of Rs 90 per share based on the feedbacks by the Merchant bankers. That (Rs 140/share) price was based on aspiration at that point of time," Jain Group ED Rishi Jain said.
The shares would be listed on the BSE SME platform issuing fresh 32.21 lakh shares of Rs 10 each to investors and additional 1.7lakh shares to market maker at a price of Rs 90 per share.
In BSE sme platform, market maker is a must for each company to offer liquidity to the investors.
The expansion will be adjacent to the existing property of Kolkata and will add another 90-100 keys at an additional cost of Rs 70-75 crore.
The dilution by the promoters post fresh issue will be 28 per cent, Jain said. The group owns 100 per cent now.
The company said it proposes to develop two other hotels in Siliguri and Durgapur and for which land is already in place.
Total additional Rs 240 crore, is lined up in these two proposed hotel properties to create total 180 rooms. Construction of the Siliguri Holiday Inn hotel is expected to begin by end of this year, Jain said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)