Jain group hotel to come out with IPO

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. It would file its draft red herring prospectus (DRHP) with the bourse in December, a company official said. 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 said. Jain said 80 new rooms would be added to the existing 140 rooms at the hotel. A large banqueting space would also form a part of the expansion, the cost of which was pegged at Rs 120 crore. The company would set up two Holiday Inn hotels at Durgapur and Siliguri, he added. 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," he said. 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.