As Goa’s Tito’s Resorts and Hospitalities looks to expand its footprint and business, it is planning to offload around 10 percent stake at a valuation of $115.6 million (around Rs 1,000 crore), as per media reports.
The company, which operates the nightclubs, Tito’s and Café Mambo in Goa, is considering the stake sale before exploring a small and medium enterprise (SME) Initial Public Offering (IPO).
It will become one of the few Goa-based companies to be listed on the Indian stock market.
Those Goan companies, whose shares are traded on the markets, include Blue Coast Hotels Limited, D-Link (India) Limited, Smartlink Holdings Limited, Zuari Agro Chemicals Limited, Sandu Pharmaceuticals Limited and Misquita Engineering Pvt Limited.
It will become one of the few Goa-based companies to be listed on the Indian stock market.
Tito’s IPO would require issue of fresh equity shares. According to reports, the company is looking to dilute at least 30 percent of its equity in the public offering. For this, it has roped in ICICI Securities as one of its book-running lead managers.
The firm has initiated talks with potential investors, but did not reveal their names. "Once (the deal) comes in, the second part will be to possibly look at an IPO," Ricardo D'Souza told a section of the media.
There are no plans for an offer-for-sale (OFS) for now. D'Souza told the media that even though the plans for it were afoot, the IPO was not an “immediate priority”.
"The valuation of Tito's, including the business, land and brand, is Rs 10 billion," he added.
As per reports, the hospitality company is planning to diversify into the real estate and software services sectors. It is also eyeing the casino business in Thailand – which recently cleared a draft law to legalise casinos – with a potential future expansion into Goa.
The first Tito’s nightclub, facing Baga beach in Calangute, was started by Tito Henry De Souza in 1971 as a place “for all the expats to meet up”.
The company has already forayed into Thailand and the UAE markets.
The first Tito’s nightclub, facing Baga beach in Calangute, was started by Tito Henry De Souza in 1971 as a place “for all the expats to meet up”.
Since then, it has expanded and become Goa’s key tourist hotspot, attracting those looking for a vibrant nightlife and a place to party with friends and family.
It is now being run by De Souza’s sons, Ricardo and David, who have grown the business with “their innovative and global vision to increase their customer base”.
The company’s website states close to 90,000 visitors come to its nightclubs every month and it has hosted around 26,500 parties since its inception.
These iconic places have also been venues for major events including Femina Miss India auditions, Splitsvilla, Roadies, Sunburn After Party, The Annual Tito’s Calendar Shoot, Mr and Miss Tito’s International and Miss Goa International 2016.