Chalet Hotels launches QIP to raise ₹1,200 cr, sets floor price at ₹780.76 per share

Chalet Hotels has launched a QIP (qualified institutional placement) issue at a floor price of ₹780.76 per share, which is nearly at 10% discount to Wednesday's closing price of ₹870.15. Sources told CNBC-TV18 that the total issue size is said to be ₹1,200 crore.

The QIP Committee of Chalet Hotels at its meeting held today considered and approved the opening of the QIP issue.

In an exchange filing, Chalet Hotels had said that the issue price will be determined by the company in consultation with the book running lead managers appointed in relation to the issue.

A QIP is a method by which a company raises funds by allotting shares to eligible institutional buyers.

A few days ago, Chalet Hotels had said that its shareholders approved a special resolution to raise ₹2,000 crore.

The company had said it is "in expansion phase and foresees opportunities for growth, as it continues to evaluate organic and inorganic options to improve its market share and accelerate its business growth and would require funds for achieving such growth and expansion".

Chalet Hotels had stated that it intended to use the proceeds towards pre-payment and/or repayment of debt; organic and inorganic growth/expansion; redemption/restructuring of preference shares or other outstanding securities along with other general corporate purposes.

On the earnings front, Chalet Hotels reported a consolidated net profit of ₹1,024 crore for the quarter ended December 2023. Its total income surged by an impressive 94% to ₹320 crore.

On Wednesday, shares of Chalet Hotels closed 0.16% higher at ₹870.15 on the NSE. The stock, over the last 12 months, has gained over 140%. Based on the December 2023 shareholding pattern, promoters of Chalet Hotels held a 71.70% stake in the company.