FabHotels, part of Travelstack Tech Limited, aims to raise Rs 250 crore through a new share issue as it has submitted draft papers to the Securities and Exchange Board of India (SEBI). The public offering also includes an offer-for-sale (OFS) of 2.68 crore equity shares by early investors such as Accel India, Panthera Growth Fund, Anupam Mittal, Qualcomm, and XTO10X. According to the Draft Red Herring Prospectus (DRHP), Vaibhav Aggarwal is set to offload up to 35.82 lakh shares, while Adarsh Manpuria will sell up to 17.91 lakh shares. Anupam Mittal intends to sell 10.37 lakh shares as well. Other shareholders selling holdings include Accel India, Panthera Growth Fund, Global Private Opportunities Partners, and Qualcomm.
Highlights
Use of Funds from Fresh Issue
The company plans to use the net proceeds from the new share issue to partially fund its working capital needs, repay certain borrowings, and cater to general corporate requirements. Additionally, Travelstack may consider a pre-IPO placement of up to Rs 50 crore, which, if executed, could lower the scale of the public offering.
As detailed in the DRHP, Accel India is the largest external stakeholder with a 21.75% share, followed by Qualcomm Asia, which owns an 8% stake in the company. Furthermore, Vaibhav Aggarwal holds a 19.20% ownership.
About FabHotels
Established in 2014 by Aggarwal and Manpuria, FabHotels is a flourishing hotel chain based in Gurugram, operating over 1,300 properties across more than 50 major Indian cities, which include Mumbai, NCR, Bengaluru, and Goa.
Financial Performance
On the financial front, FabHotels reported an operating revenue of Rs 400 crore during the first half of the current fiscal year (H1 FY26). The company’s net profit for the same period reached Rs 32 crore.
IPO Management
The upcoming IPO will be facilitated by Motilal Oswal, IIFL Capital, and Nuvama, while MUFG Intime will serve as the registrar.
