SAMHI Hotels subscribed 5.33 times with good interest from QIBs

SAMHI Hotels subscribed 5.33 times with good interest from QIBs
Representational imageSAMHI Hotels
  • SAMHI Hotels’ IPO received decent response from institutional investors on day 3.
  • The qualified institutional buyer (QIB) portion was subscribed 8.82 times.
  • The retail portion was subscribed only 1.11 times.
The initial public offer (IPO) of SAMHI Hotels was subscribed 5.33 times at the end of the third day of the issue. The issue received decent participation from qualified institutional buyers (QIBs) who subscribed 8.82 times. Retail investors however subscribed only 1.11 times.

The company had fixed the price band at ₹119 to ₹126 per equity share for its maiden public offer and the issue has closed on Monday, September 18.

Investors were allowed to bid for a minimum of 119 equity shares and in multiples of 119 equity shares thereafter.

The public issue of shares that have a face value of ₹1 comprises fresh issuance of equity shares worth ₹1,200 crore and an Offer for Sale (OFS) of shares worth ₹170.1 crore.

CategoryNo of times subscribed
Non institutional investors1.22

Source: BSE

Ahead of the launch of its initial public offering (IPO), Blue Chandra Pte sold 10.32 million shares or 8.4% stake to renowned investor Madhusudan Kela's wife, Madhuri Kela, along with Nuvama Crossover Opportunities Fund and TIMF Holdings have picked up stake in Gurugram-based SAMHI Hotels for a total consideration of ₹130 crore.

Adding to its keys

SAMHI Hotels acquires or builds primary hotels and thereafter renovates, rebrands, re rates the property and runs them. The 13 year old company has added 369 keys in FY23.

Pursuant to the completion of the ACIC Acquisition in August 2023, its portfolio increased to 4,801 keys across 31 operating hotels. It also has land to build a 350 keys hotel in MIDC, Navi Mumbai.

With the acquisition, SAMHI will get access to new cities like Jaipur and will improve its inventory and market share in Hyderabad, Pune, Chennai, and Ahmedabad. In addition, it plans to add two additional hotels and 617 keys in existing cities as well as two new cities, Kolkata and Navi Mumbai, Maharashtra increasing its presence to 14 key urban consumption centers.

Some of the marquee names in its portfolio are Hyatt Regency, Pune; Courtyard by Marriott, Bengaluru; Four Points by Sheraton (Ahmedabad and Vizag); Fairfield by Marriott in Chennai Sriperumbudur, Coimbatore, Goa, Kharadi, Bengaluru) and Holiday Inn Express across Ahmedabad, Bengaluru, Pune, Gurgaon, Hyderabad, Nashik, and Chennai.

JM Financial and Kotak Mahindra Capital Company are the book running lead managers to the issue.