Hotel Polo Towers Limited, Northeast India’s largest hotel group has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its proposed initial Public Offering (IPO).

The offer, with a face value of Rs 2 per equity share, comprises a fresh issue aggregating up to Rs 300 crore and an offer-for-sale of up to 71,20,030 equity shares by promoter and other selling shareholders.

The offer for sale consists of up to 1,460,520 Equity Shares by Kishan Tibrewalla, up to 1,460,520 Equity Shares by Prem Tibrewalla, up to 1,460,520 Equity Shares by Deval Tibrewalla, and up to 2,738,470 Equity Shares Kishan Tibrewalla HUF.

The company, in consultation with the book-running lead managers, may consider a pre- IPO placement up to Rs 60 crores that is 20% of the size of the fresh issue. If such placement is completed, the fresh issue size will be reduced.

The net proceeds of the issue are proposed to be utilized for multiple purposes, including part-financing the cost of establishment, expansion, and upgradation of existing properties amounting to Rs 75.52 crore, of which Rs 8.50 crore will be allocated to the Lake Side Resort Project and Rs 67.02 crore towards the Dimapur Project.

Further, Rs 35.06 crore will be deployed for meeting the capital expenditure requirements of the Company, which includes the upgradation of existing rooms and certain public areas at Hotel Polo Towers, Agartala (Rs 11.19 crore), Hotel Polo Towers, Shillong (Rs 10.69 crore), and hotel interiors for Chapter, Shillong (Rs 13.17 crore). An additional Rs 27.04 crore is earmarked for investment in subsidiaries to meet their capital expenditure requirements, comprising Rs 13.08 crore for Woodstock Resort, Rs 9.41 crore for Manor Floatel, and Rs 4.55 crore for HPT Orchid Resort.

The Company also plans to utilize Rs 36.30 crore towards pre-payment or repayment, in part or full, of certain outstanding borrowings availed by the Company, along with Rs 15.00 crore for repayment/prepayment of borrowings of its subsidiary, HPT Orchid Resort. The balance proceeds will be deployed for funding inorganic growth through unidentified acquisitions and general corporate purposes.

The Offer is being made through the book-building process, wherein not more than 50% of the net offer is allocated to qualified institutional buyers, and not more than 15% and 35% of the net offer is assigned to non-institutional bidders and retail individual bidders respectively.

Hotel Polo Towers Limited develops, owns, operates and manages a chain of upscale and midscale hotels and resorts in Northeast, East and North India under the ‘Polo’ and ‘Max’ brands. Hotel Polo Towers is the largest hotel group in Northeast India in terms of number of hotels as at March 31, 2025 and are the oldest private sector hotel group from Northeast India with brand presence across multiple hotels within the region (source: Horwath HTL Report)

As at August 31, 2025, the company’s hospitality portfolio comprises nine operational hotels and resorts located in Agartala (Tripura), Kolkata (West Bengal), Cherrapunjee (Meghalaya), Shillong (Meghalaya), Prayagraj (Uttar Pradesh), Jabalpur (Madhya Pradesh), Tura (Meghalaya), and Neermahal (Tripura) with an aggregate inventory of 425 keys, together with 17 on-premise cafés & restaurants and two standalone cafés, offering a wide selection of culinary experiences, along with 34 event and banquet spaces for hosting MICE events.

Revenue from operations increased from Rs 87.12 crore for Fiscal 2023 to Rs 117.97 crore for Fiscal 2025, representing a CAGR of 16.37%. EBITDA increased from Rs 35.06 crore for Fiscal 2023 to Rs 55.14 crore for Fiscal 2025, representing a CAGR of 25.41%. Profit for the year increased from Rs 13.13 crore for Fiscal 2023 to Rs 22.09 crore for Fiscal 2025, representing a CAGR of 29.68%.

The Book Running Lead Managers to the issue are Equirus Capital Private Limited and Motilal Oswal Investment Advisors Limited, and the Registrar to the Offer is MUFG Intime India Private Limited.