Chalet Hotels Limited is engaged in the business of owner, developer and asset manager of high-end hotels in key metro cities in India. This is a Mumbai based company. Here, in this article, we are going to demonstrate Chalet Hotels IPO Review.
Chalet Hotels IPO Review Issue Details :
- IPO Opens on – January 29, 2019.
- IPO Closes on – January 31, 2019.
- Face Value – Rs.10 Per Equity Share.
- Issue Price – Rs.- Rs. Per Equity Share.
- Issue Type – Book Built Issue IPO.
- Market Lot – 53 shares
- Minimum Order Quantity – 53 shares
- Issue Size –
- Fresh issue – [.] Equity Shares of Rs. 10 aggregating up to Rs. 950.00 Cr.
- Offer for sale – 24,685,000 Equity Shares of Rs. 10 aggregating up to Rs. [.] Cr.
- Listing Exchange – BSE, NSE.
- Draft Prospectus – Download.
Objectives of the issue of the Company :
- Chalet Hotels Limited will not receive any proceeds of the Offer for Sale by the Selling Shareholders.
- The objects of the Fresh Issue of this company are –
- Chalet Hotels Limited’s fresh issue is Repayment or Prepayment of certain indebtedness.
- General corporate purposes of this company.
About The Company –
- Chalet Hotels Limited was incorporated in 1986.
- This company’s platform comprises 5 operating hotels, including a hotel with a co-located serviced residence, located in the Mumbai Metropolitan Region, Hyderabad, and Bengaluru.
- Chalet Hotels Limited are branded with globally recognized hospitality brands and are in the luxury-upper upscale and upscale hotel segments.
- This company is currently branded with global brands such as JW Marriott, Westin, Marriott, Marriott Executive Apartments, Renaissance and Four Points by Sheraton which are held by Marriott Hotels.
- Chalet Hotels Limited is a leading business group in India which is part of K. Raheja Corp group.
- This company owns 4 hotels, including a hotel with a co-located serviced residence, which is managed by third parties, which represent 2,176 keys.
- Chalet Hotels Limited has also developed commercial and retail spaces at close proximity to its hotels.
- This company’s hotel platform is based on strategic locations, efficient design and development of the hotels, appropriate positioning in hotel segments together with branding and operational tie-ups with leading hospitality companies.
- All the hotel of Chalet Hotels Limited assets is located in high-density business districts of their respective metro cities with high barriers-to-entry close to airports, major business centers or commercial districts and other convenient locations.
- This Company has a competitive advantage in key metro cities due to its early mover advantage in large, mixed-use developments in specific micro-markets.
HEAD OFFICE –
Raheja Tower, 4th Floor
Block G, Plot No. C-30,
Bandra Kurla Complex,
Bandra (E), Mumbai- 400 051 India.
Phone: 022 26564000
The promoter of Chalet Hotels Limited :
- Ravi C. Raheja aged 46 years, is the Promoter and a Non-Executive Director of this company.
- Neel C. Raheja aged 44 years, is Promoter and a Non-Executive Director of this company.
- K Raheja Corp is also the Promoter of this company.
Name of the Shareholder of Chalet Hotels Limited :
- Palm Shelter Estate Development LLP.
- Jyoti C. Raheja Jointly with Chandru L. Raheja.
- Chandru L. Raheja Jointly with Jyoti C. Raheja.
- Casa Maria Properties LLP.
- Raghukool Estate Development LLP.
- Capstan Trading LLP.
- Anbee Constructions LLP.
- Cape Trading LLP.
- Ravi C. Raheja Jointly with Chandru L. Raheja Jointly with Jyoti C. Raheja.
- Neel C. Raheja Jointly with Chandru L. Raheja Jointly with Jyoti C. Raheja.
- Mr. Chandru L. Raheja.
- Mrs. Jyoti C. Raheja.
- Neel C. Raheja Jointly with Ramesh M. Valecha.
The Board of Directors of this company :
- Hetal Gandhi, is the Chairman and Independent Director of this Company.
- Ravi C. Raheja, is the Promoter and a Non-Executive Director of this Company.
- Neel C. Raheja, is the Promoter and a Non- Executive Director of this Company.
- Sanjay Sethi is the Managing Director and Chief Executive Officer of this Company.
- Rajeev Newar, is an Executive Director and Chief Financial Officer of this Company.
- Arthur William De Haast, is an Independent Director of this Company.
- Conrad D’Souza, is an Independent Director of this Company.
- Radhika Piramal, is an Independent Director of this Company.
Competitive Strengths of Chalet Hotels Limited :
- The main competitive strength of Chalet Hotels Limited is High-End Branded Hotels Strategically Located in Key Metro Cities of India.
- Active Asset Management Model is another strength of this company.
- One of the competitive strength of Chalet Hotels Limited is Well Positioned to Benefit from Industry Trends.
- Experienced Management Team is the strengths of this company.
Business Strategies for this company :
- The actual business strategy of Chalet Hotels Limited is focused on Maximizing Performance in Existing Portfolio through Active Asset Management.
- Disciplined Development of Assets in the Current Pipeline of this company.
- One of the strategies of Chalet Hotels Limited is expanding Portfolio by way of Opportunistic and Accretive Acquisitions.
- Maintain a Sustainable Capital Structure and Ensure Prudent Capital Allocation of this company.
Company Financials :
The company financials is important for stating Chalet Hotels IPO Review.
Chalet Hotels IPO Review :
Now, let’s get into the Chalet Hotels IPO Review. The chart represents the company’s annual profit-loss statement. It shows the company has gone through a strong recession period. From1,263.91 millions it comes to the 284.26 slabs. Hence, it’s clear that the growth of the company is diminishing. Now, we can look at the fundamental details of the company, derived from the prospectus. Basic and diluted EPS (earnings per share) is at the level of 1.82 (as per FY2018 consolidated statement). The prospectus doesn’t reflect price to earnings ratio of the company. Return on Net Worth or RoNW stands at 4.43 and NAV/Share is 29.36 (as per the 2018 consolidated statement). Our analysis says Chalet Hotels IPO Review carries a NEGATIVE review. The company now stands at the risky stage. Therefore, it is advisable not to invest in this IPO, otherwise, invest at your own risk.