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Bharat Hotels, Spandana Sphoorty get Sebi's go-ahead for IPO

twitter-logoPTI | October 17, 2018 | Updated 13:42 IST

New Delhi, Oct 17 (PTI) Bharat Hotels, which runs five-star properties under The LaLiT brand, and micro-finance lender Spandana Sphoorty Financial have received markets regulator Sebi's go-ahead to float IPOs. With this, the total number of companies getting Sebi's clearance to launch initial share-sales has reached 60 so far this year. Bharat Hotels and Spandana Sphoorty obtained the regulator's "observations" on October 12, latest update with Securities and Exchange Board of India (Sebi) showed. The two companies had approached the markets regulator in June with their respective IPO papers. Sebi's observations are necessary for any company to launch public issues like initial public offer (IPO), follow-on public offer (FPO) and rights issue. Going by the draft papers, Bharat Hotels' IPO comprises sale of fresh equity shares to the tune of Rs 1,200 crore. Proceeds of the issue will be utilised towards repayment of certain loans availed by the company and for other general corporate purposes. HDFC Bank Ltd, Edelweiss Financial Services and YES Securities (India) will manage the company’s public issue. As of March 2018, the company operated 12 luxury hotels, palaces and resorts under The LaLiT brand and two mid-market segment hotels under The LaLiT Traveller brand across the country's key businesses and leisure travel destinations, offering 2,261 rooms. The IPO of Spandana Sphoorty consists of fresh issue of shares worth up to Rs 400 crore, and an offer for sale of up to 13,146,595 equity stocks by existing shareholders, including Kedaara Capital Alternative Investment, Helion Venture Partners and Valiant Mauritius Partners, as per the draft papers. Net proceeds of the fresh issue will be utilised for augmenting capital base and general corporate purposes. Axis Capital, ICICI Securities, IIFL Holdings and JM Financial are the book running lead managers to the issue. PTI SP ANU ANU

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