Iconic Goan nightclub Tito's mulls at least 10% equity sale before IPO

An IPO, however, is not immediately on D'Souza's mind, who along with his brother David and their family owns Tito's, a key attraction in the beach state of Goa that draws millions of domestic and international tourists every year. Photo: Tito's

Tito's Resorts and Hospitalities, which runs an iconic club in the Indian tourist state of Goa, is looking to sell a stake of at least 10 percent at a $115.6 million valuation before exploring a public offering, co-owner Ricardo D'Souza said on Wednesday.

Earlier in the day, local media reported that Tito's was eyeing a valuation of Rs 1,000 crore through an initial public offering for small and medium enterprises (SME).

Public issues by SMEs, defined as companies with an annual turnover of Rs 5 crore to Rs 250 crore ($577,827.60-$28.9 million), have soared in the last two years.

Over 159 SMEs raised Rs 5,700 crore through such issues in the financial year till October 15, compared with the previous year's record of Rs 6,000 crore.

An IPO, however, is not immediately on D'Souza's mind, who along with his brother David and their family owns Tito's, a key attraction in the beach state of Goa that draws millions of domestic and international tourists every year.

"The valuation of Tito's, including the business, land and brand, is Rs 1,000 crore," Ricardo told Reuters. He declined to share Tito's financials.

The firm is already in discussions with interested parties, whose names he did not mention.

"Once it (the deal) comes in, the second part will be to possibly look at an IPO," he added.

The broader Tito's group, which also has a presence in Thailand and the UAE, is looking to expand into the real estate and software services sectors at a time when Indian tourism is facing competition from global destinations such as Vietnam and Thailand.

With Thailand approving a draft law to legalise casinos and gambling, Tito's will also aim to set up casinos in Thailand, D'Souza said, adding that the group will consider entering the casino business in its home turf of Goa.