SAMHI Hotels IPO: SAMHI Hotels IPO to open on September 14; fresh issue size revised to Rs 1,200 crore

The initial public offer (IPO) of SAMHI Hotels will open for subscription on September 14. The issue will be available for the public to bid on until September 18.

The IPO comprises a fresh equity issue of up to Rs 1,200 crore (revised upwards from Rs 1,000 crore) and an offer for sale (OFS) of 1.35 crore shares by selling shareholders. The price band for the issue will be announced soon.

Under the OFS, Blue Chandra Pte will offload 84.2 lakh shares, Goldman Sachs will sell up to 49.31 lakh equity shares and GTI Capital Alpha will give up 1.4 lakh shares.

The offer is being made through the book-building process where 75% of the issue is reserved for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail investors.

SAMHI Hotels is a prominent hotel ownership and asset management platform in India, with the third largest inventory of operational keys (owned and leased) in the country as of February 2023.

The company acquires or builds primary hotels and thereafter renovates, and rebrands the properties under its wings. All of its hotels are in the upper upscale and upscale, upper mid-scale, and mid-scale hotel segments, typically operating under long-term management contracts with established and well-recognized global hotel operators.

Some of the marquee names in its portfolio are Hyatt Regency, Pune, and Courtyard by Marriott, Bengaluru.Net proceeds from the issue worth Rs 900 crore will be used towards repaying debt and the remaining for general corporate purposes.

For the year ending March 2023, the company has recorded revenue from operations of Rs 738 crore and a loss of Rs 338.5 crore.

JM Financial and Kotak Mahindra Capital Company are the book-running lead managers for the issue, and KFin Technologies is the registrar.

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