SAMHI Hotels IPO to open on Sept 14; check price band, lot size & other details

The initial public offering (IPO) of SAMHI Hotels will open for bidding on Thursday, September 14. The hotel chain player will be offering its shares in the range of Rs 119-126 per share, with a lot size of 119 equity shares and its multiples thereof. The three-day bidding will conclude on Monday, September 18.

Incorporated in 2010, SAMHI Hotels is a professionally managed branded hotel ownership and asset management platform in India. SAMHI's hotels operate under well-recognized hotel operators such as Courtyard by Marriott, Sheraton, Hyatt Regency, Hyatt Place, Fairfield by Marriott, Four Points by Sheraton, and Holiday Inn Express.

The company is looking to raise Rs 1,370 crore from its primary offering which includes a fresh equity sale of Rs 1,200 crore an offer-for-sale (OFS) of 1.35 crore equity shares amounting to Rs 170 by Blue Chandra, Goldman Sachs Investments Holdings (Asia) and GTI Capital Alpha. Anchor book for the issue opens on Wednesday, September 13.

The company intends to utilize the net proceeds from the issue towards repayment or prepayment of certain borrowings availed of by the company and the subsidiaries including payment of the interest accrued thereon and general corporate purposes. Proceeds from the OFS shall go to the selling shareholders of the company.

SAMHI Hotels has a portfolio of 4,801 keys across 31 operating hotels in 14 of India's key urban consumption centers, including Bengaluru, Hyderabad, National Capital Region (NCR), Pune, Chennai, and Ahmedabad, Gujarat as of March 31, 2023. The company also has 2 hotels under development with a total of 461 keys in Kolkata and Navi Mumbai.

For the year ended on March 31, 2023, SAMHI Hotels reported a net loss of Rs 338.59 crore with a total revenue from operations at Rs 761.43 crore. The company's net loss stood at Rs 443.25 crore with a revenue from operations at 333.10 crore in the previous year ended March 2022.

The company has reserved 75 per cent of the net offer for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will get 15 per cent of the offering. Remaining 10 per cent of the offer shall go to retail investors.

JM Financial and Kotak Mahindra Capital Company are the book-running managers to the issue, while Kfin Technologies has been appointed as the registrar to the issue. Shares of the company are likely to be listed on both BSE and NSE.


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