Shares of Chalet Hotels Ltd opened 4% premium on the bourses on Thursday, after its ₹1641 crore initial public offer (IPO) was subscribed 1.57 times last week.
Chalet Hotels shares opened 3.93% higher on the BSE at ₹291 a piece compared to the issue price of ₹280, which was the upper end of the price band between ₹275 and ₹280 per share. At 10.31am, Chalet Hotels stock was trading up 1.6% at ₹284 a share, while benchmark 30-share Sensex traded 0.28% higher at 37,074.97 points. In intraday trade, the stock fell as much as 10.66% to ₹250.15 per share.
The Chalet Hotels IPO comprises a fresh issue of ₹950 crore and a secondary market sale of 246.85 crore shares by the promoter group. Promoter holding will decline to roughly 71.2% from 100%. The company will use the fund to pay debt up to ₹720 crore and the balance amount will be used for general corporate purposes.
For first half of 2019, the company reported a loss of ₹43.67 crore while revenue was at ₹469.87 crore. For fiscal year 2018, the company reported a profit of ₹31.16 crore, down 75.55% from ₹127.44 crore a year ago. Revenue rose 23.8% from a year ago to ₹873.78 crore. As of September 2018, the company has total debt of ₹2468 crore.
Chalet Hotels (CHL), a part of K. Raheja Corp group, is the owner, developer and asset manager of high-end hotels in key Indian metro cities. CHL operates across five hotels, with 2,328 keys as of September 30, 2018.
CHL’s hotels are associated with Marriott group brands (leading global hospitality group) like JW Marriott, Westin, Marriott, Marriott Executive Apartments, Renaissance and Four Points by Sheraton.
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This article was first published on livemint.com