Chalet Hotels\u2019 Initial Public Offering (IPO) for approximately Rs 1,640 crore opens for subscription today. Chalet Hotels looks to about Rs 950 crore through fresh issue of shares, while the existing shareholders of the K\u00a0Raheja Corp group company look to sell another Rs 2.47 crore shares via OFS (offer for sale). We take a closer look at five key things to know.\u00a0\u00a0 About Chalet Hotels Part of the K. Raheja Corp, Chalet Hotels is an owner, developer and asset manager of high-end hotels in key metro cities in India. The Company\u2019s hotel platform comprises five operating hotels including a hotel with a co-located serviced residence, located in the key Indian cities of Mumbai, Hyderabad and Bengaluru, representing 2,328 keys as of March 31, 2018, according to the company\u2019s website. \u00a0The company\u2019s hotels are branded with global hospitality brands such as JW Marriott, Westin, Marriott, Marriott Executive Apartments etc. IPO details Chalet Hotels has come out with a public offer for Rs 1,641 crore. The issue will open on Tuesday, 29 January 2019 and will close on Thursday, 31 January 2019. The company looks to raise up to Rs 950 crore by fresh equity issuance while the existing shareholders will offload another about 2.47 crore shares for approximately Rs 700 crore worth of shares via OFS (offer for sale). The company has set a price band of Rs 275-280 per equity share. It has set a minimum lot size of 53 shares and investors can pick up lots of 53 shares thereafter. Also read:\u00a0Share Market Live: Sensex down 120 points, Nifty below 10,650; Yes Bank, Bajaj Auto among top losers IPO proceeds According to the company\u2019s prospectus, the proceeds of the issue will be used for repayment of certain indebtedness and also for general corporate purposes. The company will not receive any proceeds from the offer for sale, as all the proceeds from it will go to the selling shareholders. Financials For the previous year ended March 2018, the company\u2019s total turnover stood at Rs 930 crore with earnings before interest, depreciation, tax and amortisation (Ebidta) of Rs 350 crore. The company\u2019s net debt as on FY 2018 was Rs 2,653 crore. Valuations \u201cThe issue seems to be fairly priced, leaving limited room for share price appreciation. However, considering the future industry outlook, relatively lower room rates as compared to historical peak, efficient operations and industry leading operating margin, we assign a \u201cSubscribe with Caution\u201d rating to the issue,\u201d Choice Broking said in a note.