Holiday Inn operator in Kolkata seeks valuation of Rs150 crore in share sale
Kolkata: Dream Gateway Hotels Ltd, an arm of real estate developer Jain Group, is seeking a valuation of around Rs150 crore as it plans to sell 25% of its shares and list itself on the BSE’s small and medium enterprise platform.
The company, which operates the Holiday Inn hotel in Kolkata under a management contract with Intercontinental Hotels Group and is building two more, is looking to sell 2.57 million shares at a price of around Rs150 each and raise around Rs39 crore.
Rishi Jain, director, Dream Gateway Hotels, said the company will file the draft red herring prospectus with the securities market regulator this month. The company is loath to taking more loans for expansion, Jain said, adding that it has already borrowed around Rs68 crore.
The cash raised through sale of shares is to be invested for expanding the 140-room Kolkata property, which was launched in February this year. Two other properties are to be constructed in Siliguri and Durgapur, starting next year, at a combined cost of Rs225 crore.
Jain said the company will sell more shares to fund the next round of expansion. The new properties under planning are expected to materialise in 2020-2021. In the current fiscal year, the company has clocked a revenue of Rs28.5 crore so far and has set itself a target of taking it to Rs130 crore by 2020, according to Jain.