Vatika Hotels to come up with Rs 800 crore IPO
Vatika Hotels, the hospitality arm of Vatika Group, plans to come up with a Rs 800-crore initial public offering (IPO) by September this year.
The funds would be used for investment into brownfield projects and expansion of its hotels, business centres and facility management business.
“In the following years, we have rigorous growth plans for all our verticals and aim to issue an IPO by the third quarter of 2018, which would be of around Rs 800 crore,” said Gaurav Bhalla, Managing Director, Vatika Hotels.
The company plans to increase the capacity of Westin, Gurugram with 200 more rooms along with additional expansion plans for the Westin resort by 40 keys located in Sohna, Bhalla informed. “The funds generated would be used to take the advantage of the newly formed Transit Oriented Development (TOD) policy,” he said.
Meanwhile, the company has also bought back the remaining shares from US banking group Goldman Sachs for Rs 300 crore and now owns a 100% of its equity.
Goldman Sachs had invested Rs 300 crore in Vatika Hotels in the form of Compulsory Convertible Debenture, which got later translated into equity in 2015.