New Delhi: Hospitality chain Pride Hotels has received regulator Sebi's approval to raise funds through initial public offerings (IPO), an update with the capital markets regulator showed on Friday. According to industry sources, Pride Hotels is going to raise Rs 1,000 crore through a public issue. The Mumbai-based hospitality chain, which filed its preliminary papers with Sebi in October 2025, received a nod to float its IPO on January 16, the update showed.
According to the draft papers, the public issue is a mix of fresh shares worth Rs 260 crore and an offer-for-sale of up to 3.92 crore shares by promoters and promoter group entities. In addition, the company may consider raising funds worth Rs 52 crore through a pre-IPO placement, and in that case, the size of the fresh issue will be adjusted accordingly.
The net proceeds from the IPO will be utilised by the company to fund the capital expenditure towards renovation of existing hotels, debt repayment, and general corporate purposes. The company's operating portfolio comprises 2,723 rooms across 34 operational hotels and resorts. In December 2025, Pride Hotels Chairman & MD Sureshchand Premchand Jain told PTI that the company intends to deploy the funds over the next 12 to 27 months to undertake renovation, refurbishment and upgradation of six out of seven hotels in its owned portfolio. These properties are located in New Delhi, Ahmedabad, Kolkata, Bengaluru, Pune and Chennai.
Apart from refurbishing its existing assets, the company is also accelerating its expansion plans. Chief Executive Officer Satyen Jain said Pride Hotels has expanded its footprint from 19 hotels in 2019 to 34 at present, and has another 32 properties in the pipeline that are expected to become operational over the next two to three years. The company's shares are proposed to be listed on the BSE and NSE. Motilal Oswal Investment Advisors Ltd and JM Financial are the book-running lead managers for the IPO.
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