Chalet Hotels Ltd. Embarks on Major Fundraising Drive, Reports Strong Financial Performance

Chalet Hotels Ltd., the top hospitality and property firm in the K Raheja Corp Group, has declared a list of key financial decisions and strong operational performances that reflect its aggressive growth plans for the next few years. 

 

Key Highlights

 

Major Fundraising Initiatives

 

The board of directors of Chalet Hotels Ltd. has sanctioned raising up to ₹10,000 million (₹1,000 crore) through a Qualified Institutional Placement (QIP). The QIP was successfully completed in April 2024, and over 12.6 million equity shares were allotted at ₹792 per share, thereby raising the paid-up capital of the company to ₹218.1 crore. Large institutional investors like Smallcap World Fund, SBI Mutual Fund, Axis Mutual Fund, and ICICI Prudential participated in the issue.

 

Besides, the board has facilitated the company to raise up to ₹2,500 million (₹250 crore) through commercial paper, further allowing for flexibility in working capital and expansion requirements.

 

Shareholders have also approved raising up to ₹2,000 crore (₹20,000 million) to support the company's expansion plans, with near unanimous approval in a recent poll.

 

Strong Financial Results

 

For the quarter ended March 2024, Chalet Hotels registered a consolidated revenue from operations of ₹5.22 billion (₹522 crore), demonstrating sustained growth in its hospitality and commercial real estate businesses.

 

The organization recorded a consolidated net profit of ₹124 billion for the quarter, demonstrating its operational effectiveness and strategic location in important Indian marketplaces.

 

Strategic Expansion and Growth

 

Chalet Hotels has 10 luxury and premium hotels in prime cities like Mumbai, Hyderabad, Bengaluru, NCR, Lonavala, and Pune, and is working on developing two new hotels in New Delhi and Navi Mumbai.

 

The company is also utilizing a mixed-use model by combining commercial assets with its hotel assets, maximizing its real estate portfolio for the highest returns.

 

With around ₹15 billion of investments planned for the next two years, Chalet Hotels is set to grow substantially, both organically and through possible acquisitions.

 

Leadership Commentary

 

Sanjay Sethi, Managing Director & CEO, thanked shareholders and employees, highlighting that the recent injection of capital and strategic emphasis on high capital productivity put the company on the path to long-term growth in the current market upcycle.

 

Outlook

Chalet Hotels Ltd is capitalising on the buoyant hospitality and real estate markets in India, with a clear direction of expansion, operational excellence, and generation of shareholder value. The successful fund raising, good financial performance, and current development projects indicate a strong future direction for the company.

 

Source: Angel One, Chalet Hotels Ltd. Annual Report 2023-24, Economic Times Hospitality