Ace Tours: Ready For A Capital Market Outing

Ace Tours Worldwide (Ace Tours), a tours and travel company based in Surat, Gujarat, is coming up with an IPO on Indian bourses. The issue constitutes an offer of 81 lakh equity shares at a face value of Rs 10 each. The Book Running Lead Manager for this IPO is Corporate Strategic Allianz.

Ace Tours was established in the year 2007, and in 2011, it became a public company. It has branches located at Mumbai, Ahmedabad and Rajkot. The company offers both domestic and international tour services for tourists, including summer and winter packages. It also provides allied services like school trips, special planned tours, travel booking (air ticket, railway ticket, hotel booking), etc.

The company intends to use the funds raised from the issue to upgrade its hardware and software (Rs 297.50 lakh), as well as towards brand building (Rs 720.94 lakh) and working capital requirements (Rs 741.23 lakh). It also intends to set up a 36-room service apartment facility for tourists in Surat, for which it is planning to invest Rs 1653.54 lakh.

The tours and travel industry is directly related to the country’s GDP growth. When the economy does well, the industry also receives a boost, as the customer and visitor sentiment changes. In the current scenario, the economy is on the way to growth, which augurs well for the travel industry.

The price band and lot size for the issue have not yet been disclosed by the company. We will keep you updated as and when these details are disclosed.