Samhi Hotels' IPO witnessed robust demand, being oversubscribed 5.33 times. The IPO, valued at Rs 1,370 crore, attracted bids for 33,30,05,911 shares against the available 6,25,29,831 shares. Qualified institutional buyers dominated the demand, oversubscribed by 8.82 times, while non-institutional investors subscribed 1.22 times and retail individual investors subscribed 1.11 times. Samhi Hotels, known for acquiring, developing, and operating hotels, holds a portfolio of 4,801 keys across 31 operational hotels. The IPO proceeds will be used for debt repayment and general corporate purposes. JM Financial and Kotak Mahindra Capital Company managed the offering.
Samhi Hotels' Initial Public Offering (IPO) concluded on a high note, garnering a subscription rate of 5.33 times by the end of the final bidding day. This IPO, valued at Rs 1,370 crore, witnessed robust investor interest, with bids pouring in for a total of 33,30,05,911 shares, surpassing the available 6,25,29,831 shares, according to data from the NSE. Qualified institutional buyers (QIBs), often viewed as medium-to-long-term investors, have oversubscribed their 75 percent allocated quota by 8.82 times. However, high-net-worth individuals and retail investors have shown less enthusiasm, subscribing to 1.22 times and 1.11 times their respective portions, constituting 15 percent and 10 percent of the total offering.
The IPO was structured with a fresh issue component of up to Rs 1,200 crore, in addition to an offer for sale of up to 13,500,000 equity shares. The pricing for this offering ranged between Rs 119 and Rs 126 per share. Samhi Hotels, headquartered in Gurugram, in preparation for its upcoming IPO, successfully secured Rs 616.54 crore from anchor investors. The company allocated 4.89 crore shares to 35 anchor investors at a rate of Rs 126 per share. Additionally, in a pre-IPO placement, external investor Blue Chandra divested 10.32 million shares, equivalent to 8.4 percent of its stake, to well-known investor Madhusudan Kela's spouse, Madhuri Kela, along with Nuvama Crossover Opportunities Fund and TIMF Holdings. This transaction was completed for a total consideration of Rs 130 crore.
Samhi Hotels stands as a prominent figure in the Indian hospitality sector, boasting a robust branded hotel ownership and asset management platform. With an institutional ownership model and guided by an experienced leadership and professional management team, Samhi maintains a diverse portfolio encompassing 31 operational hotels, totalling 4,801 keys. Its presence extends across 14 cities in India, including prominent locations like the National Capital Region (NCR), Bengaluru, Hyderabad, Chennai, and Pune. Notably, in the recent fiscal year (FY23), it added 369 keys to its portfolio, elevating it to the position of the third-largest hotel owner in terms of keys, all within a relatively brief operational history of 13 years.
The company's utilization of the net proceeds from the fresh issue is earmarked for debt repayment and general corporate purposes. JM Financial and Kotak Mahindra Capital Company have assumed pivotal roles as the book-running lead managers for this IPO, with Kfin Technologies serving as the IPO registrar. These same entities have also fulfilled managerial responsibilities for the offer. Samhi Hotels' IPO highlights the continued vitality of the Indian capital markets and investor confidence in the real estate sector, particularly within the hospitality industry. The successful conclusion of this offering positions Samhi Hotels for further growth and expansion in the dynamic Indian hospitality landscape.
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