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Before its listing, Samhi Hotels’ shares were trading at a slight premium of Rs 5 in the unlisted market. The company had launched an IPO consisting of 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. The pricing was set between Rs 119-126 per equity share.
In the run-up to the IPO, Blue Chandra Pte Ltd sold an 8.4% stake or 10.32 million shares to prominent investor Madhusudan Kela’s wife, Madhuri Kela. Nuvama Crossover Opportunities Fund and TIMF Holdings also acquired stakes in Samhi Hotels for a total consideration of Rs 130 crore.
The proceeds from the issue, amounting to Rs 900 crore, have been allocated for debt repayment and general corporate purposes. JM Financial and Kotak Mahindra Capital Company acted as the book-running lead managers for the issue while KFin Technologies served as the registrar.
Samhi Hotels specializes in acquiring or building primary hotels before renovating and rebranding them. Their portfolio spans across upper upscale and upscale, upper mid-scale and mid-scale hotel segments. These properties typically operate under long-term management contracts with globally recognized hotel operators.
Despite posting losses for the past three financial years, including a loss of Rs 338.5 crore reported in FY23, Samhi Hotels’ revenue from operations surged more than twofold to Rs 738 crore for the year ending March 2023.
Samhi Hotels’ IPO opened for public subscription on September 14, 2023, with a substantial issue size of Rs 1,370 crore. The offering comprised fresh equity worth Rs 1,200 crore and an offer-for-sale (OFS) of Rs 170 crore. Anchor Investors, Qualified Institutional Brokers (QIBs), and High Net Worth Individuals (HNIs) were offered a 90 per cent stake in the issue and Anchor Investors showed strong support by subscribing to shares worth Rs 616.55 crore.
The company plans to utilise the net proceeds from the IPO primarily for debt repayment and general corporate purposes. Their portfolio includes 31 operating hotels in 14 key urban areas across India. Their recent acquisition of Asia Capital added 962 keys across six operating hotels, further solidifying their position as the third-largest hotel owner in terms of keys, headquartered in Gurugram.
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