Samhi Hotels IPO day 3: Issue subscribed 5.33 times

18 Sept 2023 , 10:02 PM

The public issue of privately-held Samhi Hotels saw a strong response from qualified institutional buyers (QIBs) on the final day of bidding, September 18, with bids totaling 33.30 crore equity shares against an offer size of 6.25 crores, resulting in a subscription rate of 5.33 times.

QIBs, typically characterized as medium-to-long-term investors, subscribed 8.82 times the allocated quota, which represents 75% of the total issue size. However, the issue did not garner as much support from high net-worth individuals and retail investors, who subscribed 1.22 times and 1.11 times, respectively, the portion reserved for them, accounting for 15% and 10% of the total offer.

Samhi Hotels, a prominent branded hotel ownership and asset management platform in India, aims to raise Rs 1,370.1 crore from the public issue at the upper price band. This comprises a fresh issue of shares valued at Rs 1,200 crore and an offer-for-sale (OFS) of 1.35 crore shares worth Rs 170.1 crore, offered by three selling shareholders.

The price band for the offer, which had achieved a 12% subscription rate by September 15 (the second day of bidding), was set at Rs 119-126 per share. The company, supported by global investors Equity International, ACIC Mauritius, and Goldman Sachs, intends to utilize the net proceeds from the fresh issue primarily to repay debt amounting to Rs 900 crore, with the remainder allocated for general corporate purposes.

As of August, Samhi Hotels, which primarily acquires or constructs business hotels, possesses a portfolio of 4,801 keys across 31 operating hotels in key urban consumption centers in India.

The finalization of the basis for the allotment of IPO shares by the company, in consultation with the BSE, is scheduled for the end of September 22. Eligible investors can expect their equity shares to be credited to their demat accounts by September 26. Refunds or the unblocking of funds from ASBA accounts for unsuccessful investors will be processed by September 25.

Samhi Hotels is set to make its debut on the BSE and NSE on September 27, following the IPO schedule.