Iconic Goa Nightclub Tito's Plans Stake Sale, IPO With Rs 1,000 Crore Valuation

Tito's Resorts and Hospitalities, known for its iconic nightlife destination in Goa, is looking to sell at least 10 per cent of its stake at a $115.6 million valuation, Reuters reported. The company is also eyeing a potential public offering, with a focus on an SME initial public offering (IPO), co-owner Ricardo D'Souza announced on Wednesday.

Founded in 1971, Tito's Group is known for its hospitality, local culture, and happening nightlife experiences in Goa. The company operates popular nightclubs like Club Tito's and Cafe Mambo, both recognised as the best nightclubs in the region. These venues have hosted high-profile events, including Femina Miss India auditions, Roadies, and Sunburn After Party, among others.

Tito's aims for a valuation of Rs 1,000 crore through the SME IPO, which would likely involve a fresh issuance of equity shares. The company plans to dilute at least 30 per cent of its equity in the public offering, with no current plans for an offer-for-sale. The firm has selected ICICI Securities as one of its book-running lead managers for the IPO process.

Despite the preparations for the IPO, Ricardo D'Souza clarified that it was not an immediate priority. "The valuation of Tito's, including the business, land, and brand, is 10 billion rupees," he told Reuters. The company is in discussions with potential investors but has not revealed their names. "Once (the deal) comes in, the second part will be to possibly look at an IPO," Mr D'Souza added.

Tito's is planning to expand into the real estate and software services sectors. The group, which also has a presence in Thailand and the UAE, is particularly eyeing the casino business. With Thailand's recent move to approve a draft law to legalise casinos, Tito's is exploring opportunities to set up casinos there, with a potential future expansion into Goa.

Tito's, run by brothers Ricardo and David D'Souza, is a key attraction in Goa, drawing millions of domestic and international tourists annually.