Kotak Private Equity backed Pride Hotels Ltd is planning a Rs 200 crore IPO in January 2010, reports The Hindu Business Line. The company has appointed Edleweiss Capital as a lead manager. The IPO proceedings will part fund its Rs 800-crore expansion plan, while the balance will be raised through a mix of internal accruals, debt and private placement of equity.
The company is also in talks with private equity funds to raise capital. S.P. Jain, Managing Director, told Business Line that the company will offload around 30% equity to meet the fund requirements.
In 2007, Kotak Private Equity invested $11.3 million to pick up about 11% stake in the company.
The company plans to operate 30 hotels by year 2015, while it currently has five five-star properties and another five business hotels and resorts, which comprises of 1,000 rooms.