Ahmedabad, Dec 28 (UNI) Pride Group of Hotels will float an initial public offering (IPO) of 59.50 lakh shares in the first quarter of 2008 to meet requirements of its Rs 340 crore expansion plan.
Pride Group Chairman S P Jain today said the Group has received a significant investment of Rs 45 crore from Kotak India Real Estate Fund for part financing of its expansion-cum-renovation plan and an additional Rs 10 crore from a Mauritius-based Fund.
He said the Group aims to utilise the funds for setting up new hotels in Mumbai, Goa, Bangalore and Alibaug as well as for the expansion-cum-renovation plan.
Pride Hotels has acquired 4.5 acres land at Alibaug near Mumbai, where it proposes to set up a resort-cum-spa. The Company has also bought property near the international airport in Mumbai for the construction of a 200-room hotel while the Group's hotel in Bangalore is near completion and will open by June 2008.
The Group currently offers 430 rooms in Pune, Nagpur, Ahmedabad and Chennai and post-expansion it will offer 1,126 rooms in the five star category by 2009-10.
The Group has 11 food outlets including restaurants, coffee shops, bars, 19 banquet halls and conference rooms, Mr Jain said.
He said that as per the survey by FHRAI and Department of Tourism there is a shortage of 90,000 rooms in five star category of hotels. Therefore, the Tourism Department has offered an incentive scheme for construction of one to three star hotels, he added.