Pride Hotels secures Sebi's approval to raise ₹1,000 crore via IPO

Pride Hotels Limited on Friday received market regulator Sebi’s approval for an initial public offering (IPO) of Rs 1,000 crore.

 

The offer comprises a fresh issue of equity shares aggregating up to Rs 260 crore and an offer for sale of up to 3.92 crore equity shares with a face value of Rs 5 each. 

According to its draft red herring prospectus (DRHP), which was filed in October, the company will use Rs 159.68 crore to modernise and renovate existing hotels, Rs 40 crore for debt repayment, and the remaining proceeds for general corporate purposes. 

The company recorded a 13.1 per cent uptick in revenue to Rs 305.6 crore in the financial year 2024-25 (FY25) from Rs 270 crore in the year-ago period. Its net profit rose 23.5 per cent to Rs 83.5 crore in FY25 from Rs 66 crore in the same period last year.

 

 

The company has an operating portfolio of 2,723 rooms across 34 operational hotels and resorts. The portfolio includes seven owned hotels and resorts, amounting to 1,136 rooms, while 27 hotels and resorts are managed under hotel management agreements, amounting to 1,587 rooms.

 

The group’s growth strategy includes an asset-light expansion model, backed by a development pipeline of 21 upcoming hotels amounting to 1,500 keys under signed management agreements. The company has also signed 11 letters of intent with third-party owners to operate additional hotels and resorts, which will add 841 keys to its network.

 

The homegrown hospitality chain, headquartered in Pune, has a strong presence in cities such as Delhi, Nagpur, Ahmedabad, Kolkata, Pune, Chennai, Bengaluru, Indore, Bhopal, Rajkot, Jaipur, Udaipur, Dehradun and Puri, across business, leisure and pilgrimage destinations in India, under four differentiated brands — Pride Plaza, Pride Premier, Pride Elite and Biznotel by Pride.

 

Motilal Oswal Investment Advisors Limited and JM Financial Limited are the book-running lead managers to the issue.