Pride Group of Hotels plans IPO of Rs 200 cr, eyes PE funding

MUMBAI: Hospitality major, Pride Group of Hotels, is planning an IPO of around Rs 200 crore in Q1 FY 11 besides tapping private equity funds to fuel its Rs 800 crore expansion through 2015.

"We plan to tap the capital market in mid-2010 to the tune of Rs 175-200 crore. Besides, we are also eyeing PE investments. We have lined up a Rs 800 crore expansion through 2015 by when we should have 30 hotels under our fold," Pride Hotels' Chairman, S P Jain, said.

The group, which presently has 10 hotels, is eyeing PE funding of Rs 45 crore and is in discussions with a few players for the same. Around Rs 250 crore will be generated through internal accruals while the remaining will come through term loans, Jain said.

The company has already expended Rs 75 crore out of the Rs 800 crore earmarked and has, besides, obtained PE funding of Rs 55 crore from Kotak Realty Fund and a Mauritius-based fund, he said, which has been used for building its Bangalore hotel.