Chalet Hotels shares rise 5 percent on stock market debut

Shares of Chalet Hotels rose 5 percent on its stock market debut after its Rs 1,641 crore IPO was subscribed 1.57 times last week. The stock opened at Rs 294 per share on NSE, up 5 percent from its issue prices of Rs 280 per share. On the BSE, Chalet Hotels shares listed at Rs 291 per share, up 3.9 percent from its issue price. At 10.33 AM, the stock traded 2.04 percent up at Rs 285.70 per share on the BSE, and 2.30 percent up at Rs 286.45 per share on the NSE.

The Chalet Hotels IPO opened for the subscription from January 28 to January 31. It had a price range of Rs 275-Rs 280. The K Raheja Corp-promoted company plans to use part of the proceeds from its Rs 1,640-crore IPO to pare debt. The balance amount from IPO would be used for general corporate purpose.

Chalet Hotels, the hospitality unit of K Raheja group, has about 2,328 rooms, managed by Marriott, spread across five properties in Mumbai, Bengaluru and Hyderabad. The properties serve mainly in the premium and above segments.

JM Financial Limited, Axis Capital Limited and Morgan Stanley India managed the offer.