The Initial Public Offering(IPO) for the week is-
Silver Pearl Hospitality & Luxury Spaces Limited-
Silver Pearl Hospitality & luxury Spaces limited is a hospitality company that operates in the mid-priced hotel sector consisting of upper-midscale, midscale, and economy hotel segments. The properties are located at Rakchham, Kinnaur, Himachal Pradesh. The first hotel property of the company started operations in FY 19-20. All the hotels, cafes, and restaurants are operated under the brand named “Osiya”. Currently, the company is operating 36 rooms in 4 properties and it seeks to cater to the family as well as adventure-loving guests. The café owned by the company has a seating capacity of 100 people.
The portfolio of the company consists of-
- Osiya Shambhu Lodge at Rakchham.
- Osiya Shoshla Café.
- Osiya Rangnoo Rakchham Retreat.
- Osiya Tashi Dolma Homestay – For online marketing and branding.
- Osiya Baba Inn Guest house- For online marketing and branding.
The company intends to purchase a hotel property in Goa as part of its growth and diversification strategy. It has entered into a Memorandum of Understanding for the purchase of property at a price of Rs 6.8 crore, paid an advance of Rs 30 lakhs, and a balance of Rs. 6.5 crore will be paid from the net proceeds of the issue.
The company undertakes the business through-
- Direct ownership of hotel properties.
- Long-term lease or license arrangements for the lands on which it constructs its hotel properties.
- Long-term leases of existing hotels that are owned by third parties.
- Marketing agreements.
The promoters of the company are Mr. Rajesh Kumar Negi and Two sisters hotels and resort private limited. The net proceeds of the issue would be utilized for the purchase of hotel property in Goa and general corporate purposes.
The company had revenues of Rs 8.35 lakh with a net profit of 0.6 lakhs (Year ended March 31, 2019), revenues of Rs. 29.37 lakh with a profit of Rs. 0.48 lakh (Year ended March 31, 2020) and revenue of Rs. 18.41 lakh with a net profit of Rs. 3.30 lakhs (Year ended March 31, 2021).