In a major breakthrough for Goan industry, Mac Hotels becomes the first small company from Goa to list on the Bombay SME Stock Exchange
In an achievement that underlines the strength of local companies, Goan hospitality company Mac Hotels Ltd recently got its shares listed on the Bombay SME Stock Exchange, making it the first small enterprise from the state to access the capital market on the small and medium enterprise (SME) platform. Promoted by the Cotta family hailing from Agassaim, Mac Hotels Ltd is the first small family-promoted enterprise to raise funds through an initial public offering (IPO) of equity shares, and the 265th company to get listed on the BSE SME platform on October 4.
Established on December 1990, the Mac Group is a privately held group of companies, in the business of owning, operating and managing hotels, restaurants and resorts. Today, the company is a reputed brand in the state, with a number of prestigious projects to their name. These include Hotel Miramar, Sand Castles Holiday Homes, Miramar, Ocean Heights – designer bungalows in Dona Paula, Resort Village Royale, Calangute and Park Avenue Resort, Calangute. With the entry of Mac Hotels Ltd on the BSE SME Exchange, Goa’s small clique of public limited companies just got bigger. Promoted by the Cotta brothers – Edwin Cotta, chairman, Edgar Cotta, managing director and Schubert Cotta, chief financial officer, Mac Hotels Ltd making a debut on the BSE stock exchange, marks a major breakthrough for Goa industry. According to Edwin Cotta, local companies are fearful of approaching the capital market. The listing was carried out through a simultaneous ringing of the gong, in Goa and at the Bombay Stock Exchange. Post-listing Edwin Cotta said that it is a great feeling to have made the jump to a listed company. He added that by raising equity capital and being a part of the stock market, they aim to create value for themselves as well as their investors.
Edwin Cotta, further, goes on to add that the economy is growing at a brisk pace. “The upcoming Mopa airport offers a big jump in opportunities to the local hospitality industry. We are not the biggest but certainly the bravest.” He explains that raising funds from the stock market gives access to low-cost capital as well as create value for the shareholders. The proceeds from the IPO will be used to increase scale and take the capacity to 500 rooms. “The company will expand not only in Goa but also pan-India. In the short-term we have got an offer to manage a hotel in Sri Lanka which we are likely to accept,” he says, adding that, the longer term goal is to migrate to the BSE main exchange in the next three years.
The other directors of Mac Hotels include Ingrid Cotta, non-executive director and independent directors Blaise Costabir, founder, Zarhak Moulders, Verna and Ephran Mendenha, ex-banker. The IPO was completed on September 24 2018. It raised ₹1.94 crore of equity capital through the issue of 8,10,000 equity shares at an offer price of ₹24 (₹10 face value + ₹14 premium). The post-paid up capital of the company is about ₹3 crore of which 75 per cent is owned by the promoters and 25 per cent by the public.
The shares closed at ₹25.80 on the first day of listing
