The Pune-based company, which filed its initial papers with market regulator Sebi in October, is awaiting regulatory approval to bring about the IPO.
The proposed IPO has Rs. Includes fresh issue of 260 crore equity shares and offer for sale (OFS) of 3.92 crore equity shares by existing shareholders.
From fresh issue Rs. 159.68 crore was used for modernization and renovation of existing hotels, Rs. 40 crore for debt repayment and the balance will be used for general corporate purposes.
By March 2025, the total borrowing will be Rs. 65 crore, the draft papers show.
Elaborating on the utilization plan, Jain told PTI that the company is looking to mobilize funds over the next 12 to 27 months to carry out renovation, renovation and upgradation of six of the seven hotels in its portfolio. These properties are located in New Delhi, Ahmedabad, Kolkata, Bengaluru, Pune and Chennai.
Established nearly four decades ago, Pride Hotels operates its chain of hotels and resorts under the brand “Pride Hotels & Resorts”. Its current portfolio of 34 hotels includes seven owned properties and 27 managed properties.
Apart from renovating its existing assets, the company is also accelerating its expansion plans.
Chief Executive Officer Satyen Jain said Pride Hotels has expanded its footprint from 19 hotels in 2019 to 34 currently, and has another 32 properties in the pipeline that are expected to be operational in the next two to three years.
He added that the expansion strategy is focused on strengthening the company’s presence across India, with an emphasis on business hubs, leisure destinations and pilgrimage destinations.
Within the pipeline portfolio, Pride Hotels has 21 properties under development, totaling approximately 1,500 keys across 19 locations. These include upcoming business and leisure destinations like Aurangabad, Nainital, Amritsar and Alwar as well as pilgrimage destinations like Ayodhya and Palitana.
In addition, the company has signed 11 letters of intent with third-party owners to operate additional hotels and resorts, adding about 841 keys to its network.
The CEO said the expansion will be largely driven by a portfolio managed under an asset-light model, which will enable rapid scale-up with limited capital expenditure.
At the same time, he said the company plans to selectively pursue proprietary portfolio opportunities, including the acquisition of strategically located hotels that offer the potential for an operational turnaround.
On the financial front, the company posted a profit after tax in FY25 of Rs. 83.5 crore as against Rs. 66 crore, while the revenue was Rs. 270 crore to Rs. 305.62 crores.
Industry prospects also remain supportive and according to Horwath’s report, the Indian hospitality sector had 209,000 chain-affiliated rooms as of June 30, 2025, with an additional 118,000 rooms expected by FY2030. Additionally, about 66 percent of the supply from the next six cities comes from the top cities outside the project.
However, this rapid expansion is expected to intensify competition across segments and geographies, especially in Tier 2 and Tier 3 cities.
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