Bharat Hotels
When founder Lalit Suri passed away last year, the management of this hotel group fell to his wife, Jyotsna. Given her untested abilities, a public listing and the introduction of professional management seems much needed. The Dubai Investment Group recently paid $40 million (Rs 164 crore) for a 5 per cent stake in Bharat Hotels. But the company will need more capital, as it plans to add 3,800 rooms at a cost of Rs 1,000 crore. Bharat has also announced its first international foray — the construction of The Grand Fort Dubai — in partnership with the Dubai-based Nakheel Group. Based on a comparison with its listed peers, we believe Bharat Hotels’ current market capitalisation would be about Rs 2,000 crore, a figure that could well double as the company’s plans fall into place.

Vijai Electricals
Vijai was founded 30 years ago by D.J. Ramesh and is one of India’s largest power equipment companies. Given India’s massive energy needs, Vijai is investing $70 million (Rs 287 crore) in expanding its product range.

To fund this expansion, the company has raised $25 million (Rs 102.5 crore) from UK-based private equity firm 3i Capital. But the capital-intensive nature of Vijai's core business and the high multiples commanded by power companies make listing an attractive option.

Given the valuations enjoyed by peers such as Bharat Bijlee, EMCO and Indo Tec., Vijai could command a market capitalisation of Rs 2,500 to Rs 3,000 crore if it listed today. Continuing growth in the power sector means that over the next few years, Vijai’s domestic market growth will probably be even faster than it has been in the past, and its valuation could touch Rs 5,000 crore by 2010.