Samhi Hotels IPO Lists at 6.75% Premium on D-Street despite Lower Subscription

22 Sep 2023 , 09:55 AM

Samhi Hotels, despite experiencing lower interest from retail investors during the book-building process and facing financial challenges in recent years, has made its debut on the stock market with a premium of 6.75%.

On the NSE, the shares of Samhi Hotels opened at Rs 134.50, representing a premium of 6.75% over the issue price of Rs 126. Meanwhile, on the BSE, the shares began trading at Rs 130.55, indicating a 3.61% premium.

The initial public offering (IPO) received relatively fewer applications from investors, with a subscription rate of 5.57 times. This stronger interest came primarily from qualified institutional buyers (QIB), while high net-worth individuals and retail investors showed less enthusiasm, subscribing at rates of 1.22 times and 1.11 times, respectively.

The company, which enjoys backing from global investors such as Equity International, ACIC Mauritius, and Goldman Sachs, plans to use the net proceeds from the fresh issue to repay debt amounting to Rs 900 crore, with the remainder allocated for general corporate purposes.

As of August, Samhi Hotels, specializing in the acquisition and construction of business hotels, owns a portfolio of 4,801 keys spread across 31 operational hotels in key urban consumption centers in India.