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Jain Group to raise ₹30 crore to fund expansion

June 13, 2018
The ₹600-crore Kolkata-based real estate and hospitality developer, Jain Group, will look to list its flagship company, Dream Gateway Hotels, and raise around ₹30 crore to fund expansion plans.

Dream Gateway Hotels operates and manages the Holiday Inn property in Kolkata.

According to Shrayans Jain, Vice-Chairman, Dream Gateway Hotels, around ₹75 crore is required for the phase-II expansion of Holiday Inn Kolkata Airport hotel. While ₹30 crore will come from the IPO proceeds, another ₹25 crore will come from internal accruals.

The remaining ₹10 crore will come mostly as loans from financial institutions and banks.

The existing Holiday Inn Kolkata Airport Hotel has 137 rooms, apart from other facilities such as banqueting, restaurant and so on.

IPO issue

According to Jain, the company’s proposed fixed price IPO issue will be at ₹90 per share against previous expectations of ₹140 per share.

“We have arrived at the pricing of ₹90 per share based on the feedbacks by merchant bankers and the existing market scenario,” he added.

The shares will be listed on the BSE SME platform issuing fresh 32.21 lakh shares of ₹10 each to investors and additional 1,70,000 shares to market makers.

Post the IPO, the promoter group will hold around 70-72 per cent in Dream Gateway Hotels.

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