CGH Earth to raise Rs350 cr via private equity

CGH Earth to raise Rs350 cr via private equity
PTI
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First Published: Mon, Sep 03 2007. 06 52 PM IST
Updated: Mon, Sep 03 2007. 06 52 PM IST
New Delhi: Hospitality firm CGH Earth is looking at raising Rs350 crore through private equity to fund its long-term investment plans, which include setting up 30 new resorts by 2012.
“Leisure tourism is catching up fast in the country and we want to be a part of this growth. We will invest Rs 300 crore over the next five years to set up 30 new leisure resorts across the country by 2012,” CGH Earth managing director and chief executive officer Jose Dominic told PTI.
He said the company is currently in talks with various PE investors to raise the amount required for expansion.
“We are in talks with various PE investors to dilute a part of our stake in the company,” Dominic said.
CGH Earth may also tap the stock markets through the IPO route.
“With major expansion plans lined up, tapping the capital markets is a lucrative option and we are actively looking at it but have not firmed up any plans. The IPO would provide an exit route to various investors in the company,” he added.
The company, which presently owns and manages 10 leisure resorts and hotels in South India, is looking at expanding in other parts of the country and is in the process of identifying possible locations in North.
Dominic said the company would set up 10 new resorts in Kerala, Karnataka and Tamil Nadu in the current fiscal and would look at expansion in Northern part of the country by next year.
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First Published: Mon, Sep 03 2007. 06 52 PM IST