SAMHI Hotels, a hotel ownership and asset management platform in India, is set to open its initial public offering (IPO) for subscription on Thursday. The company announced the IPO will remain open until Monday, with the shares expected to get listed on both exchanges.
The company's IPO comprises a fresh issuance of equity shares worth Rs 1,200 crore and an offer for sale (OFS) of up to 1.35 crore equity shares. In the OFS, Blue Chandra Pte plans to offload 84.2 lakh shares, Goldman Sachs (NYSE:GS) intends to sell up to 49.31 lakh (4.9 million) equity shares and GTI Capital Alpha will give up 1.4 lakh shares.
The Gurgaon-based firm has set a price band of Rs 119-126 ($1 = INR82.960) per share for the IPO. Investors can bid for a minimum of 119 shares in one lot and in multiples thereafter. About 75% of the offer is reserved for qualified institutional buyers, while non-institutional investors and retail investors have been set aside 15% and 10%, respectively.
Net proceeds from the issue worth Rs 900 crore will be used towards repaying debt and the remaining for general corporate purposes. Market analysts have noted that the current Grey Market Premium (GMP) of SAMHI Hotels is Rs 10 in the unlisted market.
JM Financial and Kotak Mahindra Capital Company are the book-running lead managers for the issue, while KFin Technologies is serving as the registrar.
As of February 2023, SAMHI Hotels was recognized as the third-largest inventory of operational keys (owned and leased) in India. The company has a portfolio of marquee names such as Hyatt Regency-Pune, and Courtyard by Marriott-Bengaluru among others.
For the year ending March 2023, the company recorded revenue from operations of Rs 738 crore () and a loss of Rs 338.5 crore. Despite this, the IPO has garnered attention due to the strong demand growth expected in the Indian travel and tourism industry, which is projected to grow at a CAGR of 10.35% between 2019 and 2028. This growth directly benefits the Indian hospitality industry and companies such as SAMHI Hotels.
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