Chalet Hotels Limited, a leading hospitality company, has successfully raised ₹100 crore through the private placement of commercial papers (CPs). The issuance, approved by the company’s Finance Committee on September 23, 2025, highlights Chalet’s ability to secure short-term funding at competitive rates to support its working capital and liquidity requirements.
Key Terms of the CP Issuance
- Issue Size: ₹100 crore
- No. of CPs: 2,000
- Face Value: ₹5,00,000 per CP
- Coupon Rate: 6.10% fixed
- Tenure: 3 months (23 Sept–22 Dec 2025)
- Credit Rating: CRISIL A1+
- Listing: Wholesale Debt Market (WDM) segment of BSE Limited
The commercial papers were issued at a discount, raising ₹98.52 crore, with redemption at par value scheduled for December 22, 2025.
Strong Credit Profile
The CRISIL A1+ rating underscores the instrument’s high credit quality and Chalet Hotels’ strong ability to meet short-term obligations. The unsecured CPs carry minimal credit risk and provide investors with a safe, liquid short-term investment avenue.
Market and Strategic Significance
This issuance demonstrates Chalet Hotels’ proactive approach to capital and liquidity management while signaling investor confidence in its creditworthiness. With a competitive interest rate of 6.10% and a three-month maturity, the CPs are designed to address short-term financing needs efficiently.
The listing on BSE’s WDM platform is expected to enhance market access and liquidity, potentially attracting institutional investors seeking high-quality short-term debt instruments.
Summary
Chalet Hotels’ ₹100 crore commercial paper issuance, backed by a top-tier CRISIL A1+ rating and listed on BSE, reflects its strong financial standing and effective liquidity management. By securing short-term funds at competitive rates, the company has reinforced its credit profile while maintaining flexibility to support ongoing operations in the dynamic hospitality sector.
Disclaimer:
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