Deneb & Pollux, travel service providing company in Delhi declared on April 28th that it is in a mission to raise fund for its new business. The firm is having talks with private equity firms to raise funds and the raised fund will be utilized to fund is new venture in the hotel segment. It will be wrong to guess that the Deneb & Pollux will start of its business in hotels afresh after being funded. The company has already opened a hotel (21 Gun Salute) to mark its business diversification in Gurgaon. The company is planning to put up two more restaurants – one in Mumbai and the other in Delhi to continue its business in hotels.

The company seems to have landed in the hotel business with much preparation as it has already decided its investment strategy. As per the statements of the managing director of Deneb & Pollux, Mr Madan Mohan , his firm has decided upon a fund of 200 crores. Half of the fund is expected to be funded by the private equity firms and the rest will be managed from bank loans. It has already started official talks with a Singapore-based private equity firm for funding. Although the name have not been disclosed, but from internal sources it has been confirmed that the company has stared meeting officially two different private equity firms for financing.

The managing directors have disclosed some more fact about the hotel business of the Deneb & Pollux, which is still at a nascent stage as per his opinion. The company has presently bought a four centuries old fort in Rajasthan and has bought a huge chunk of land in Jaipur. They want to start of their hotel business in the form of heritage hotels, which is the cause of buying such notable places. Their plan doesn’t at all show that the business is in a nascent stage, they are waiting for the funding though. The funding is supposed to be realized by the end of the year 2011 and about the heritage hotel in Rajasthan, Mr Mohan asserted that company ca very well do without third-party funding.