Tito's Resorts & Hospitalities, the flagship company of the Goa-based hospitality and nightlife brand, is preparing for an SME IPO debut. The nightclub owner is looking at a valuation of up to Rs 1,000 crore, according to people familiar with the matter.
The company, known for the iconic Tito's nightclub and Cafe Mambo at Goa's Baga, plans to dilute at least 30% of its equity through the offering. The IPO is expected to include a fresh issue of shares, with no plans for an offer for sale at this stage, the people quoted above said.
ICICI Securities reportedly has been finalised as one of the lead bankers for the issue, people aware of the development told NDTV Profit.
Sources aware of the deal also indicated that the nightclub owner is in talks for a pre-IPO equity allotment to a Goa-based Indian billionaire, which could help unlock additional value ahead of the public listing. NDTV Profit could not ascertain the name of the billionaire.
The process is still in its early stages, and finer details might change going ahead.
Brothers Ricardo and David D'Souza, who have been involved in building Tito's as a marquee brand in Goa's tourism and entertainment space, are said to be working on the optimal strategy to unlock value through the IPO. This might end up delaying the IPO process, the second person aware of the development said.
In 2021, the D'Souza brothers had sold 65% stake in Tito's Resorts to external investors. They, however, still retain full control over Tito's Spirits, under which they sell alcohol in Goa.
The move for an IPO comes as India's hospitality sector sees strong investor interest, driven by a post-pandemic recovery in tourism and leisure spending.
In fact, a Nuvama report from September 2024 noted a trend of growing emphasis on urban nightlife as primary travel purpose. This growing demography of younger travellers, possibly those without children or elderly companions, is likely to help Tito's capitalise on a market debut.
Even though there have been some questions regarding a dip in Goa's tourist inflow, Tito's listing could offer investors exposure to the high-growth nightlife and hospitality segment, where the company enjoys significant brand recognition.
NDTV Profit has reached out to both Tito's and ICICI Securities for comments on the matter.
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