On March 28, Chalet Hotels witnessed a notable 5% surge in its shares, building upon the momentum from the preceding session. This surge came in the wake of the company’s board of directors’ green signal for a fundraising initiative through a Qualified Institutional Placement (QIP).
The floor price for this QIP has been firmly set at Rs 780.76 per equity share, with the provision for the company to offer a discount of up to 5%.
Interestingly, this floor price reflects a discount of 10.4% compared to the previous day’s closing price of Rs 871.75 on the National Stock Exchange (NSE). Notably, just a week prior, Chalet Hotels’ board had approved a fundraising endeavor targeting Rs 2,000 crore through public or private offerings, which includes the QIP.
By 10:29 am, Chalet Hotels’ shares displayed a notable 3.8% surge, trading at Rs 905.55 on the National Stock Exchange (NSE). Over the past year, the stock has demonstrated remarkable performance, delivering multibagger returns with an impressive rise of 151%. In contrast, the benchmark Nifty index registered a comparatively modest growth of 31% during the same period.
A Qualified Institutional Placement (QIP) serves as a method for listed companies to raise capital from institutional investors by issuing securities such as shares or debentures, all without the necessity of conducting a public offering.
In a QIP, these securities are offered to institutional buyers, encompassing entities like mutual funds, insurance companies, banks, and foreign institutional investors, at a price determined through a book-building process.
Chalet Hotels stands as a prominent entity engaged in the ownership, development, asset management, and operation of upscale hotels strategically located in key metropolitan cities across India.
Its extensive portfolio includes seven operational hotels, which encompass a hotel with an attached serviced residence. These properties are strategically situated in prime locations within the Mumbai Metropolitan Region, Hyderabad, Bengaluru, and Pune, catering to both business and leisure travelers alike.
For the quarter ending December 2023, Chalet Hotels reported a consolidated net profit of Rs 70.62 crore, reflecting a decline from the Rs 102.34 crore recorded in the corresponding quarter of the previous year. Despite this, the company witnessed a significant uptick in net sales, which surged by 29% year-on-year to reach Rs 373.67 crore during Q3FY24.
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