SAMHI Hotels Ltd has fixed the price band for its initial public offering (IPO) at Rs 119 to Rs 126 per equity share. The IPO will open for subscription on Thursday and close on Monday, September 18, 2023. Investors can bid for a minimum of 119 Equity Shares and in multiples thereafter.
The public issue comprises of fresh issuance of equity shares worth Rs 1200 crore (1 crore = 10 million) and an Offer for Sale (OFS) up to 13.50 million equity shares. At the upper price band, SAMHI is looking to raise Rs 1,370 crore from its primary offering. Proceeds from the issue worth Rs 900 crore will be utilized towards repaying debt and the remaining for general corporate purposes. Proceeds from the OFS will go to the selling shareholders of the hotel chain player.
Under the OFS, Blue Chandra Pte will sell 84.2 lakh shares, Goldman Sachs (NYSE:GS) to offload up to 49.31 lakh equity shares and GTI Capital Alpha will sell 1.4 lakh (1 lakh = 100,000) shares. The offer is being made through the book-building process where about 75 percent of the IPO has been set aside for qualified institutional buyers, 15 percent reserved for non-institutional investors, and the remaining 10 percent for retail investors.
Ahead of the IPO opening, Blue Chandra Pte Ltd sold shares worth Rs 130 crore in SAMHI Hotels to Madhuri Madhusudan Kela, Nuvama Crossover Opportunities Fund and TIMF Holdings on September 6 and September 8 respectively. Following this stake sale, Blue Chandra's shareholding in SAMHI Hotels reduced from 30.65 percent to 22.25 percent of the pre-offer paid-up equity share capital.
SAMHI Hotels Limited operates primary hotels which it acquires or builds, then renovates, rebrands, and runs efficiently. The company added 369 keys in the last financial year (FY23) to become the third largest hotel owner by number of keys. Following the completion of the ACIC Acquisition on August 10, 2023, its portfolio has increased to 4,801 keys across 31 operating hotels.
The company also plans to expand its presence to 14 key urban consumption centers by adding two additional hotels and 617 keys in existing cities as well as two new cities, Kolkata and Navi Mumbai. Furthermore, it has land to build a 350 keys hotel in MIDC, Navi Mumbai. This acquisition will grant SAMHI access to new cities like Jaipur and improve its inventory and market share in Hyderabad, Pune, Chennai, and Ahmedabad.
For the year ended on March 31, 2023, SAMHI Hotels reported a net loss of Rs 338.59 crore and a revenue of 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.
JM Financial and Kotak Mahindra Capital Company are the book-running managers to the issue, while Kfin Technologies is the registrar. The equity shares of the company are proposed to be listed on both BSE and NSE.
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