SAMHI Hotels, a leading branded hotel ownership and asset management platform in India, launched its initial public offering (IPO) today, Thursday. The ₹1,370 crore IPO, which will close on September 18, has received a lukewarm response from investors. As of midday on the first day of bidding, the IPO was subscribed just 4% against its offer.
The IPO consists of a fresh equity sale worth ₹1,200 crore ($144.6 million) and an offer-for-sale (OFS) of 1.35 crore equity shares amounting to ₹170 crore by Blue Chandra, Goldman Sachs Investments Holdings (Asia), and GTI Capital Alpha. This marks an increase in the fresh issue size from ₹1,000 crore to ₹1,200 crore compared to the Draft Red Herring Prospectus (DRHP).
Shares are commanding a premium of ₹16 apiece in the grey market today, indicating a 12.7% premium at listing. However, it's important to note that grey market premiums are subject to rapid change.
The net proceeds from the IPO will be used towards repayment or prepayment of borrowings by the company or its subsidiaries and for general corporate purposes. Potential investors can bid for a minimum of 119 shares and in multiples of 20 shares thereafter.
The company has reserved 75% of the net offer for qualified institutional bidders (QIBs), non-institutional investors (NIIs) will get 15% of the offering, and the remaining 10% will go to retail investors.
Ahead of the IPO on Wednesday, September 13, SAMHI Hotels mobilized ₹616.54 crore from 35 anchor investors by allotting them equity shares at a price of ₹126 ($1 = INR82.960) apiece. These include Government of Singapore, Monetary Authority of Singapore, CLSA Global Markets, and others.
For the year ended on March 31, 2023, SAMHI Hotels reported a net loss of ₹338.59 crore against a net loss of ₹443.25 crore in FY22. However, its total revenue from operations soared 128 percent to ₹761.43 crore versus ₹333.10 crore in the previous year ended March 2022.
Shares of the company will be listed on both BSE and NSE with Tuesday, September 27, as the tentative date of listing of shares.
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