Bhagwati offers public issue for Rs 77.75 cr 5-star hotel in Surat

Ahmedabad, Apr 9 (UNI) City-based Bhagwati Banquets and Hotels Limited (BBHL) has come out with a public issue for its Rs 77.75 core five-star hotel in the diamond city.

The BBHL is entering the capital market with an initial public issue of 2,30,00,000 equity shares of Rs 10 each through 100 per cent Book Building route which includes 45,44,600 equity shares as promoter's contribution. The price band for the issue is Rs 35 to 40, BBHL chairman Narendra Somani said here today.

Mr Somani said the money was being raised to part finance the construction of 100-room five-star hotel at Surat at a cost of Rs 77.75 crore. The Indian Overseas Bank Limited has sanctioned a term loan of Rs 12.50 crore for the project.

The issue opens on April 18 and closes on April 25.

He said the issue price would be determined by the company in consultation with the Book Running Lead Manager on the basis of assessment of market demand for shares by the book-building process.

The hotel will be located on Dumas road in posh Athwa Lines area of the city, with just 2.5 km away from the airport.

The hotel will have multi-cuisine restaurants, a special restaurant, 24-hours coffee shop, a large banquet-cum-conference units, which can easily accommodate 5,000 people at a time and an outdoor catering facility capable of serving 1,000 people at a time, Mr Somani said.

When asked, he said the hotel will be constructed and made operational within 18 months.

UNI