Published On: Thu, Dec 7th, 2017

Dream Gateway plans to raise Rs. 40 Cr through IPO

ipoBy Accommodation Times Bureau

KOLKATA

Dream Gateway Hotels Pvt Ltd, the flagship company of city-based Jain Group, is planning to come out with an initial public offering (IPO) and get listed on the BSE SME.

A company official said It would file its draft red herring prospectus (DRHP) with the bourse in December.

The executive director of Jain Group, Rishi Jain said, “Dream Gateway Hotels would issue fresh shares to raise Rs 39 crore from the IPO.”

The proceeds of the IPO would be to part finance the expansion of the Holiday Inn Kolkata Airport Hotel, he added.

Jain said 80 new rooms would be added to the existing 140 rooms at the hotel. The cost which was pegged at Rs 120 crore. This large banqueting space would also form a part of the expansion.

The company would set up two Holiday Inn hotels at Durgapur and Siliguri, he added.

According to Jain, the purpose of the IPO is to reduce dependence on debt. “We want the company to be debt-free. The present debt burden is Rs 68 crore.”

The group had tied up with Intercontinental Hotels Group for getting the Holiday Inn brand for its properties. It has interests in real estate and hospitality sectors.

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