ICICI Prudential Asset Management Company Limited and India Opportunities Real Estate Fund (Mauritius) are part exiting from their three-year-old investment in hospitality firm Sabari Inn. The company plans to raise Rs 125 crore through fresh issue of shares through the public offer with the financial investors expected to encash Rs 45 crore by part selling their 49% stake.
ICICI Prudential Asset Management Company Limited and India Opportunities Real Estate Fund (Mauritius) had put in around Rs 30-31 crore each in the hotel firm three years ago.
Sabari Inn, that operates and manages a chain of budget hotels in Chennai, Bangalore, Coimbatore and Kodaikanal in south India, plans to use the issue proceeds to set up/lease new hotel properties besides repaying some of its existing loans.
For the year ended March’10, the company had total income of around Rs 41 crore with net profit of Rs 4.6 crore. For the three months to end June, the hotel company had total income of Rs 11.5 crore with net profit of Rs 1.6 crore. The firm is part of Sabari Group which has interests in hospitality, retail and real estate development. Its associate company, Sabari Supermarkets Pvt. Ltd, runs supermarkets under the brand name ‘Nilgiris’ on franchise business model at three locations in Chennai.
Sabari Realtors Pvt. Ltd., another associate company in which ICICI Prudential Asset Management Company Limited and India Opportunities Real Estate Fund (Mauritius) have significant equity exposure, is implementing a residential-cum-commercial complex of about 10,00,000 sq.ft in Chennai.
Besides Sabari Group, ICICI Prudential Asset Management Company Limited and India Opportunities Real Estate Fund (Mauritius) have jointly invested in some other projects too. These include their joint investment of around Rs 40 crore in Bangalore-based Shriram Properties Ltd (part of the diversified Shriram Group) early this year. This deal involved picking 49% stake in the 16-acre residential project in Yelahanka, the northern suburb of Bangalore.
