Bhagwati Banquets to raise Rs 92 cr via IPO route

New Delhi, Apr 12 (UNI) Ahmedabad-based Bhagwati Banquets and Hotels Ltd (BBHL) will raise Rs 92 crore through issuing its Initial Public Offering (IPO) at a price band of Rs 36-40, to part finance the five star hotel at Surat.

The issue will open on April 18 and close on April 25.

''The money will be used to finance the construction of the 100-room five star hotel at Surat,'' Chartered Capital&Investments Managing Director Mohib N Khericha told reporters here.

Chartered Capital&Investments is the book running lead manager to the issue.

Mr Khericha said the new hotel will cost Rs 77.5 crore and will be ready in the next 18 months. The hotel's banquet facility will accommodate 5,000 people at a time and has an outdoor catering facility capable of serving 1,000 people at a time.

The company will issue 2.3 equity shares of Rs 10 each through 100 per ccent Book Building route which includes 45,44,600 equity shares as promoter's contribution. 1.85 crore equity shares will be for the public.

UNI