Kolkata-based real estate major Jain Group will look to raise about ₹40 crore by listing its flagship company, Dream Gateway Hotels. The company will be listed on the BSE’s SME platform.
According to Rishi Jain, Executive Director, Jain Group, the company is planning an IPO placement of 25.76 lakh equity shares at a price of ₹150 a share of face value ₹10 each.
There is also a pre-IPO placement option, at the discretion of the company. It has roped in Kolkata-based Finshore as consultant.
Post issue, the company will have a market capitalisation of ₹155 crore with reserves and surplus of ₹65 crore and capital employed of ₹285.4 crore.
“We did not want to leverage our balance sheet with bank loans or opt for PE funds. Hence, we decided to go for the SME IPO,” he told reporters.
Jain said the funds will be used primarily for expansion purposes.
Dream Gateway — with a turnover of ₹29 crore in FY17 – owns the Holiday Inn Kolkata Airport property.