Bengaluru, October 1, 2025: Pride Hotels Limited, headquartered in New Delhi, has filed its Draft Red Herring Prospectus (DRHP) with SEBI for an Initial Public Offering (IPO). The company is the sixth largest hotel chain in India in terms of chain owned inventory in the upscale, upper midscale, and midscale segments (Source: Horwath Report).
The offer comprises a fresh issue of equity shares aggregating up to ₹2,600.00 million (₹260 crores) and an offer for sale of up to 39,239,446 equity shares of face value of ₹5 each.
The offer for sale includes sale of equity shares by Sureshchand Premchand Jain of up to 5,963,978 shares, Meena Sureshchand Jain of up to 2,205,030 shares, Satyen Suresh Jain of up to 5,344,740 shares, ASP Enterprises Private Limited of up to 4,964,350 shares, The Executive Inn Limited of up to 2,394,136 shares, Kopra Estate Private Limited of up to 3,049,010 shares, and Pride Plaza (I) Private Limited of up to 2,651,313 shares (The Promoter selling shareholders).
The sale also includes share by Namrata Garg of up to 98,500, Executive Housing Finance Co Limited of up to 2,386,183 shares, Pride Paradise & Development Private Limited of up to 683,720 shares, Pride Centre and Development Private Limited of up to 1,193,091, Pride Orchards Private Limited of up to 662,828 shares, SP Realtors Private Limited of up to 2,518,748 shares, SP Capital Consultants Private Limited of up to 1,855,919 shares, and SP Capital Financing Limited of up to 3,267,900 shares as detailed in the Draft Red Herring Prospectus (The Promoter Group selling shareholders).
Motilal Oswal Investment Advisors Limited and JM Financial Limited are the Book Running Lead Managers to the issue.
The Company proposes to utilize the net proceeds from the Fresh Issue towards (i) Funding capital expenditure towards renovation of existing hotels (ii) Repayment and prepayment in full of part of certain borrowings and (iii) General corporate purposes.
The company is a homegrown Indian hospitality brand that owns, develops, operates, and manages a diversified chain of hotels and resorts under the “Pride Hotels and Resorts” brand with over 38 years of experience in the hospitality industry.
The company’s operating portfolio comprises of 2,723 rooms across 34 operational hotels and resorts (collectively, “Portfolio”). The Portfolio includes seven owned hotels and resorts, aggregating of 1,136 rooms (“Owned Portfolio”) and 27 hotels and resorts that are managed by hotel management agreements, aggregating of 1,587 rooms (“Managed Portfolio”)
The Equity Shares offered through the Red Herring Prospectus are proposed to be listed on the stock exchanges being the BSE Limited (“BSE”) and the National Stock Exchange of India Limited (“NSE”, and together with the BSE, the “Stock Exchanges”).
A Pre-IPO Placement may be undertaken by the company, in consultation with the BRLMs, prior to the filing of the Red Herring Prospectus for an aggregate amount not exceeding ₹520 million (₹52 crores) (“Pre-IPO Placement”). If the Pre-IPO Placement is undertaken, the amount raised from the Pre-IPO Placement will be reduced from the fresh issue, subject to the offer complying with rule 19(2)(B) of the SCRR”. The Pre-IPO Placement, if undertaken, shall not exceed 20% of the fresh issue.
