Samhi Hotels IPO Sees Moderate Investor Interest; Subscribed 12% on Day 2

15 Sep 2023 , 10:44 PM

The public offering of Samhi Hotels, a prominent player in branded hotel ownership and asset management in India, has yet to gain strong support from investors. On the second day of bidding, September 15, participants subscribed to 12% of the offer size, amounting to 77.91 lakh shares out of the total 6.25 crore shares.

Retail investors showed the most enthusiasm for the offer, subscribing to 58% of their reserved portion, which represents 10% of the IPO size. High-net-worth individuals (non-institutional investors), with a 15% reservation, subscribed to just 7% of their allocated shares.

Qualified institutional buyers (QIBs) only subscribed to 0.005% of their allotted quota, which accounts for 75% of the offer size. Notably, 60% of the QIB portion had already been fully subscribed by anchor investors on September 12, a day before the official opening of the issue.

On its debut, the maiden public offering of Samhi Hotels was subscribed to just 7% on September 14. The price band for the offer, which opened on September 14, was set at Rs 119-126 per share.

The net fresh issue proceeds will be used to repay debts amounting to Rs 900 crore, with the remaining fresh issue funds allocated for general corporate purposes.

Samhi Hotels specializes in acquiring or constructing primarily business hotels and then enhancing these properties by partnering with established branded hotel operators. This strategic approach allows the hotels to be well-positioned within their respective markets. The company boasts a portfolio of 4,801 keys across 31 operating hotels located in key urban consumption centers in India.