Samhi Hotels IPO day 1: Issue subscribed 7% so far

14 Sep 2023 , 08:47 PM

Samhi Hotels’ initial public offering (IPO) received a lukewarm response from investors on its opening day, September 14, with bids pouring in for only 7% of the total issue size, amounting to 43.37 lakh shares out of 6.25 crore shares.

Among the investor categories, retail investors demonstrated relatively stronger support for the offering by subscribing to 34% of the reserved portion, which constitutes 10% of the overall offering.

In contrast, high-net-worth individuals (HNIs) subscribed to only two% of their allotted portion, which accounts for 15% of the total offer. The qualified institutional buyers (QIB) segment, representing 75% of the offering, showed minimal interest, with a subscription rate of just 0.005%.

Samhi Hotels specializes in the acquisition and construction of primarily business hotels, subsequently enhancing their value by collaborating with established branded hotel operators. The company aims to raise Rs 1,370.1 crore through the IPO, considering the upper price band.

The IPO comprises a fresh issuance of shares valued at Rs 1,200 crore and an offer-for-sale of 1.35 crore shares, worth Rs 170.1 crore, by three investors: Singapore-based Blue Chandra Pte Ltd, Goldman Sachs Investments Holdings (Asia), and GTI Capital Alpha.

Samhi Hotels, a privately-held entity, intends to utilize the proceeds from the fresh issue to repay debts amounting to Rs 900 crore. As of June 2023, the company reported outstanding debts of Rs 2,812.5 crore on a consolidated basis, including Rs 142.9 crore in Foreign Currency Convertible Debentures (FCCDs).