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A wholly owned subsidiary and the investment banking arm of State Bank of India
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New Delhi Municipal Council

Transaction advisor for auction of license rights to marquee hotel

2018

Deal Highlights

  • New Delhi Municipal Council (NDMC) auctioned the licence rights of the property located at Plot No. 1, Man Singh Road, New Delhi  (Taj Man Singh)
  • SBICAPS acted as the sole Transaction Advisor to NDMC and assisted them in the end-to-end auction process which included review of building plans, development of an auction framework, preparation of tender documents, managing the pre-bid meeting, responding to queries from prospective bidders, assisting in conducting of site visits,  handholding during evaluation of bids, scheduling of the live e-auction and handholding in document execution.
  • The 292 room hotel with a built-up area of 2,45,884.79 square feet built over an area of 3.78 acres is a marquee property located in the heard of Lutyen’s Delhi. 

 

SBICAPS ROLE

  • SBICAPS was able to deliver the best value to all the stakeholders, viz, NDMC and the Bidders
  • Indian Hotels Company Ltd (the Taj Group) was the highest bidder offering 32.50% revenue share, an increase of almost 88% from the erstwhile revenue share of 17.25% being offered by the previous licensee

Deal Details

Licence Tenor 33 Years
Annual Licence Fee INR 36 Cr or 32.50% of Gross Revenue
Annual Escalation As per WPI
Documentation Date April 11, 2019

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