INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Shares of Chalet Hotels made a decent stock market debut on Thursday, as the scrip got listed at Rs 294 on NSE, a 5 per cent
premium over its issue price of Rs 280 apiece.
However, five minutes into trading, the scrip was down 3 per cent lower at Rs 271 apiece.
The
Rs 1,641-crore initial public offer (IPO) by Mumbai-based K Raheja Corp ran from January 29 to January 31 and was subscribed 1.57 times.
The
price band for the issue was fixed at Rs 275-280 apiece
The issue price of the IPO was fixed at Rs 280 per share
At the issue price, the stock is valued at a cash P/E multiple of 38.7 times compared with an average of 27.8 times for its peers
On one-year forward EV/Ebitda, the scrip traded at 19.7 times against peers 21-22 times.
Chalet has five properties which comprise 2,328
The rest four, which include a service residence, are operated in accordance with hotel operation and related agreements with Marriott
The hotelier has staff-to-room ratio of around 1.22 times compared with 2 times for peers operating in the same category
In addition, the company is among the efficient energy users, which has helped it generate higher margin compared with peers.
For the year
The domestic hotel industry is at an inflexion point where occupancy level is rising as demand growth is exceeding supply growth
A slowdown in the economy, seasonal business and unexpected rise competition as cited as a possible risk to the company.
