By Praveen Paramasivam
(Reuters) – Tito’s Resorts and Hospitalities, which runs an iconic club in the Indian tourist state of Goa, is looking to sell a stake of at least 10% at a $115.6 million valuation before exploring a public offering, co-owner Ricardo D’Souza said on Wednesday.
Earlier in the day, local media reported that Tito’s was eyeing a valuation of 10 billion rupees through an initial public offering for small and medium enterprises (SME).
Public issues by SMEs, defined as companies with an annual turnover of 50 million rupees to 2.5 billion rupees ($577,827.60-$28.9 million), have soared in the last two years.
Over 159 SMEs raised 57 billion rupees through such issues in the financial year till Oct. 15, compared with the previous year’s record of 60 billion rupees.
An IPO, however, is not immediately on D’Souza’s mind, who along with his brother David and their family owns Tito’s, a key attraction in the beach state of Goa that draws millions of domestic and international tourists every year.
“The valuation of Tito’s, including the business, land and brand, is 10 billion rupees,” Ricardo told Reuters.
He declined to share Tito’s financials.
The firm is already in discussions with interested parties, whose names he did not mention.
“Once it (the deal) comes in, the second part will be to possibly look at an IPO,” he added.
The broader Tito’s group, which also has a presence in Thailand and the UAE, is looking to expand into the real estate and software services sectors at a time when Indian tourism is facing competition from global destinations such as Vietnam and Thailand.
With Thailand approving a draft law to legalise casinos and gambling, Tito’s will also aim to set up casinos in Thailand, D’Souza said, adding that the group will consider entering the casino business in its home turf of Goa.
($1 = 86.5310 Indian rupees)
(Reporting by Praveen Paramasivam; Editing by Sonia Cheema)
