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Hospitality chain Pride Hotels has received approval from the Securities and Exchange Board of India (Sebi) to launch its initial public offering, marking a key milestone in its capital-raising plans. Industry sources indicate that the Mumbai-based company is looking to raise around INR 1,000 crore through the public issue. Filed with Sebi in October last year, the IPO comprises a fresh issue of shares worth INR 260 crore along with an offer-for-sale of up to 3.92 crore shares by promoters and promoter group entities. The company may also undertake a pre-IPO placement of up to INR 52 crore, which would proportionately reduce the fresh issue size. Proceeds from the issue are expected to be used for renovating existing hotels, repaying debt and meeting general corporate requirements, as Pride Hotels looks to strengthen its portfolio and accelerate expansion across key Indian cities.
Pride Hotels has received regulatory clearance from the Securities and Exchange Board of India to proceed with its proposed initial public offering, according to an update published by the market regulator. The approval, granted earlier this month, paves the way for the hospitality chain to tap capital markets as it looks to fund refurbishment of existing assets and support its growth plans. Advertisement
As per industry sources, the company is expected to raise around INR 1,000 crore through the IPO. The draft red herring prospectus filed in October 2025 outlines a public issue comprising a fresh equity component of INR 260 crore and an offer-for-sale of up to 3.92 crore equity shares by promoters and promoter group entities. In addition, Pride Hotels has indicated that it may explore a pre-IPO placement of up to INR 52 crore. Should such a placement be completed, the size of the fresh issue would be adjusted accordingly.
The net proceeds from the IPO are proposed to be utilised primarily towards capital expenditure for renovation and refurbishment of existing hotels, repayment or prepayment of certain borrowings, and general corporate purposes. The company has highlighted the need to upgrade its owned portfolio to enhance guest experience, improve operational efficiency and remain competitive in key markets.
Pride Hotels currently operates 34 hotels and resorts across India, offering a total inventory of 2,723 rooms. Its portfolio spans a mix of business and leisure destinations, including major metros and regional centres. In an earlier interaction with PTI, Chairman and Managing Director Sureshchand Premchand Jain had indicated that the company plans to deploy funds over the next 12 to 27 months to renovate six of the seven hotels in its owned portfolio. These properties are located in cities such as New Delhi, Ahmedabad, Kolkata, Bengaluru, Pune and Chennai.
Alongside asset upgrades, the company is also pursuing an aggressive expansion strategy. Chief Executive Officer Satyen Jain has said that Pride Hotels has grown from 19 hotels in 2019 to 34 at present, and has another 32 properties in the pipeline. These upcoming hotels are expected to become operational over the next two to three years, further strengthening the chain's presence across domestic markets.
The company's shares are proposed to be listed on both the BSE and the NSE. Motilal Oswal Investment Advisors and JM Financial are acting as the book-running lead managers for the issue.
Source - PTI
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