MUMBAI: The initial public offer of K Raheja Corp-promoted Chalet Hotels will hit the market next week to raise about Rs 1,640 crore.The company will raise about Rs 950 crore by issuing fresh shares and the promoter group plans to offload up to 2,46,85,000 shares worth another Rs 690 crore in the IPO.The IPO, which is priced in a range from Rs 275 to Rs 280 per share, will open between next week for subscription.
The minimum lot size is 53 shares.The proposed objects of the net proceeds of the fresh issue are proposed to be utilized for repayment of certain indebtedness and for general corporate purposes, according to the company.Chalet Hotels has a different business model in terms of owning, developing and managing luxury upscale hospitality, commercial and residential assets.For the year ended March 2018, the companys turnover stood at Rs 930 crore with earnings before interest, depreciation, tax and amortisation (EBIDTA) of Rs 350 crore.
The companys net debt as on FY 2018 was Rs 2,653 crore.