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Friday, March 24, 2006

Bharat Hotels files DRHP with Sebi for IPO

Bharat Hotels today filed a draft red herring prospectus, DRHP, with the Securities & Exchange Board of India, Sebi, for its proposed initial public offering, according to a release.

Bharat Hotels proposes to offer upto 12 million equity shares of face value Rs10 each for cash at an issue price to be determined through the book-building process conducted on the BSE and NSE.

The issue will constitute upto 14.30% of the fully diluted post issue equity capital of the company.

Under the terms of the issue, 60% of the issue will be offered to qualified institutional buyers, QIBs; 10% to non-institutional investors; and the remainder 30% to retail investors.

Bharat Hotels presently operates six luxury hotels in India’s major cities offering more than 1,400 rooms in the five-star deluxe segment. These include Inter Continental ‘The Grand’ hotels in New Delhi, Mumbai, Goa and Srinagar as well as The Grand Ashok Bangalore and The Grand Laxmi Vilas Palace Udaipur.

The company plans to re-open by mid-2006 The Grand Temple View Khajuraho, after refurbishment. By 2007, it expects to open three additional hotels - The Grand Great Eastern Kolkata, The Grand Resort Bekal, Kerala and The Grand Ahmedabad.

Lalit Suri, Chairman and Managing Director of the company said, “We also plan to expand our presence to other cities such as Chennai, Jaipur, Hyderabad, Amritsar, Chandigarh, Noida with the aim of reaching an inventory of 3,000 rooms by 2009”.

The company has appointed Kotak Mahindra Capital Company, DSP Merrill Lynch and Deutsche Equities India as book-running lead managers to the issue.

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