Chalet Hotels Limited: Initial Public Offer to open on January 29, 2019 and to close on January 31, 2019

The Floor Price is 27.5 times the face value and the Cap Price is 28 times the Face Value of the Equity Shares.

Price Band: Rs. 275 to Rs. 280 per Equity Share

Mumbai, January 25, 2019: Chalet Hotels Limited (the “Company”), an owner, developer and asset manager of high-end hotels in key metro cities in India proposes to open its initial public offering (IPO) on January 29, 2019.  The IPO consists of equity shares of Face Value of Rs. 10 each (“Equity Shares”) of the Company aggregating up to Rs. 9,500 million (“Fresh Issue”) and an offer for sale of upto 24,685,000 equity shares (the “offered shares”) . The offer for sale comprises (i) up to 5,550,000 equity shares by Ravi C. Raheja; (ii) up to 5,550,000 equity shares Neel C. Raheja; (iii) up to 10,784,176 equity shares by K. Raheja Corp Private Limited; (iv) up to 800,000 equity shares by Palm Shelter Estate Development LLP; and (v) up to 2,000,824 equity shares by Ivory Properties And Hotels Private Limited (collectively the “Selling Shareholders”, And Such Offer For Sale, the “Offer For Sale”).

The Bid/Offer Period will close on January 31, 2019. The Price Band for the Offer is from Rs. 275 to Rs. 280 per Equity Share. Bids can be made for a minimum lot of 53 Equity Shares and in multiples of 53 Equity Shares thereafter.

The Equity Shares are proposed to be listed on BSE and NSE.

The Book Running Lead Managers (“BRLMs”) to the Offer are JM Financial Limited, Axis Capital Limited and Morgan Stanley India Company Private Limited.

The proposed objects of the net proceeds of the Fresh Issue (“Net Proceeds”) are proposed to be utilized for: (i) repayment/prepayment of certain indebtedness; and (ii) general corporate purposes.

*Our Company and the Selling Shareholders, in consultation with the BRLMs, may consider participation by Anchor Investors, in accordance with the SEBI ICDR Regulations. The Anchor Investor Bidding Date shall be one Working Day prior to the Bid/ Offer Opening Date i.e., January 28, 2019.

In terms of Rule 19(2) (b) (iii) of the Securities Contracts (Regulation) Rules, 1957, as amended (the “SCRR”) read with Regulation 41 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (“SEBI ICDR Regulations”), this is an Offer for at least 10% of the post-Offer paid-up Equity Share capital of our Company. The Offer is being made through the Book Building Process, in compliance with Regulation 26(1) of the SEBI ICDR Regulations, wherein not more than 50% of the Offer shall be allotted on a proportionate basis to Qualified Institutional Buyers (the “QIBs”) (the “QIB Category”), provided that our Company and the Selling Shareholders in consultation with the BRLMs, may allocate up to 60% of the QIB Category to Anchor Investors, on a discretionary basis (the “Anchor Investor Portion”). One-third of the Anchor Investor Portion shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the price at which allocation is made to Anchor Investors (the “Anchor Investor Allocation Price”). Post allocation to the Anchor Investors, the QIB Category will be reduced by such number of Equity Shares. 5% of the QIB Category (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Category shall be available for allocation on a proportionate basis to QIBs (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received from them at or above the Offer Price. Further, not less than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Investors and not less than 35% of the Offer will be available for allocation to Retail Individual Investors, in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. All potential Bidders, other than the Anchor Investors are mandatorily required to participate in this Offer only through the Application Supported by Blocked Amount (“ASBA”) process, providing details of their respective bank accounts in which the Bid amount will be blocked. The Anchor Investors are not permitted to participate in the Anchor Investor Portion through the ASBA process. For details, see “Offer Procedure” beginning on 691.

All capitalized terms used herein and not specifically defined shall have the same meaning as ascribed to them in the RHP.