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Pride Hotels plans to launch its initial public offering by March 2026, with a focus on strengthening its balance sheet and upgrading its hotel portfolio. The proposed IPO includes a fresh issue of INR 260 crore and an offer for sale by existing shareholders. A major portion of the funds will be used to renovate and modernise the company's owned hotels across key cities such as Delhi, Bengaluru, Pune and Chennai, while part will go towards debt reduction. Alongside refurbishment, Pride Hotels is expanding its pan-India presence through an asset-light model, with a strong pipeline of new hotels across business, leisure and pilgrimage destinations.
Hospitality chain Pride Hotels is planning to launch its initial public offering by March 2026, with the proceeds earmarked primarily for renovating its existing hotel portfolio and paring down outstanding borrowings, according to Chairman and Managing Director Sureshchand Premchand Jain. The Pune-based company had filed its draft red herring prospectus with the Securities and Exchange Board of India in October and is currently awaiting regulatory clearance to proceed with the public issue. Advertisement
The proposed IPO consists of a fresh issue of equity shares amounting to INR 260 crore, along with an offer for sale of 3.92 crore equity shares by existing shareholders. As outlined in the draft papers, a significant portion of the fresh issue proceeds, amounting to INR 159.68 crore, will be deployed towards modernisation and refurbishment of the company's owned hotels, while INR 40 crore has been allocated for debt repayment. The remaining funds will be utilised for general corporate purposes. As of March 2025, the company's total borrowings stood at INR 65 crore.
Jain said the company plans to deploy the capital raised over a period of 12 to 27 months, focusing on the renovation, refurbishment and upgradation of six of its seven owned hotels. These properties are located in key urban markets including New Delhi, Ahmedabad, Kolkata, Bengaluru, Pune and Chennai. The refurbishment programme is intended to enhance operational efficiency, improve guest experience and strengthen the brand's positioning in competitive city markets.
Founded nearly four decades ago, Pride Hotels operates under the Pride Hotels and Resorts brand and currently has a portfolio of 34 hotels, comprising seven owned assets and 27 managed properties. Alongside upgrading its existing portfolio, the company is also stepping up its expansion efforts across India.
Chief Executive Officer Satyen Jain said the group has expanded from 19 hotels in 2019 to 34 at present and has a pipeline of 32 additional properties scheduled to become operational over the next two to three years. The expansion strategy is focused on strengthening the company's pan-India presence, with a balanced mix of business destinations, leisure markets and pilgrimage centres.
Within the pipeline, Pride Hotels has 21 properties under development across 19 locations, adding nearly 1,500 keys. These include cities such as Aurangabad, Nainital, Amritsar and Alwar, as well as religious destinations including Ayodhya and Palitana. In addition, the company has signed 11 letters of intent with third-party owners to operate hotels and resorts, adding approximately 841 keys to its managed portfolio. The expansion is largely being driven through an asset-light model, while selectively evaluating acquisition opportunities in strategically located owned assets.
On the financial front, the company reported an increase in profit after tax to INR 83.5 crore in FY25 from INR 66 crore a year earlier, while revenues rose to INR 305.62 crore from INR 270 crore. Industry data indicates continued growth in the Indian hospitality sector, although rising supply in Tier II and Tier III cities is expected to intensify competition across markets.
Source - PTI
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