Chalet Hotels jumps 5% on board nod to QIP, floor price set at Rs 780.76

Chalet Hotels is an owner, developer, asset manager and operator of high-end hotels in key metro cities in India.

Shares of Chalet Hotels jumped around 5 percent on March 28, extending the previous session's gains after the company's board of directors approved a proposal to raise funds through Qualified Institutional Placement (QIP).

The floor price for the QIP has been fixed at Rs 780.76 per equity share, but the company can offer a discount of up to 5 percent.

The floor price is at a discount of 10.4 percent to the previous day's closing price of Rs 871.75 on the National Stock Exchange (NSE). A week ago, Chalet Hotels' board had approved raising Rs 2,000 crore through public or private offerings, including a QIP.

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At 10:29am, Chalet Hotels shares were trading 3.8 percent higher at Rs 905.55 on the National Stock Exchange (NSE). The stock has delivered multibagger returns in the last one year, rising 151 percent. In comparison, benchmark Nifty rose 31 percent during this period.

QIP is a way for listed companies to raise funds from institutional investors by issuing securities like shares or debentures, without needing to make a public offering.

In a QIP, shares are issued to institutional buyers such as mutual funds, insurance companies, banks, and foreign institutional investors, at a price determined through a book-building process.

Chalet Hotels is an owner, developer, asset manager and operator of high-end hotels in key metro cities in India.

Its portfolio comprises of seven operating hotels, including a hotel with a co-located serviced residence, which are situated across the markets of the Mumbai Metropolitan Region, Hyderabad, Bengaluru and Pune.

Also Read | Chalet Hotels likely to raise up to Rs 1,200 crore via QIP at Rs 775 per share

For the quarter ended December 2023, the company's consolidated net profit stood at Rs 70.62 crore as against Rs 102.34 crore posted in the year-ago quarter. Its net sales rose 29 percent on-year to Rs 373.67 crore in Q3FY24.