Tata Group-owned Indian Hotel Company (IHCL) is set to launch an IPO for its Ginger brand and give exit route to at least one investor. IHCL holds 67 per cent stake in Ginger Properties Roots Corporation Limited (RCL). Ginger is one of the largest hotel brands in India.
A senior executive of IHCL said that Tata Opportunities, a third party private equity fund, may exit RCL. IHCL’s Executive Vice President and CFO Giridhar Sanjeevi said just a few days ago that Tata Opportunities Fund has been our partner for the last 10 years. Now the timing of his exit from the company is being discussed.
Tata Opportunities Fund had bought a 10 per cent stake in 2010. A firm decision has not been taken on this issue yet, but according to experts, priority will be given to the fact that before the IPO, RCL will be made 100% subsidiary of IHCL.
The IHCL Ginger portfolio comprises 78 hotels located in 50 cities, out of which 24 are underdeveloped properties. Ginger is an entry segment Hotel Broad. Recently, great efforts have been made to upgrade it. This is not the first time that Ginger’s IPO is being planned. Even before this, there was talk of listing of Ginger in 2012.
It is worth noting that Ginger has been making losses for IHCL so far. Still, Ginger has the best cupping rate among the entire group. It should also be mentioned that IHCL has 3 more hotel brands. These include Taj, Vivanta and SeleQtions.
RCL has added 33 new properties since 2018. According to this, the company has added more than 1 new property every month.
According to the data provided by IHCL, the revenue of RCL stood at Rs 134.86 crore for the financial year ended March 31, 2021, down 37 per cent year-on-year. Let us inform that the income of the company in the year ended 31 March 2020 was Rs 212.65 crore. The company had a loss of Rs 49.38 crore in FY 2021 while the company had a loss of Rs 22.77 crore in FY 2020.
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