Samhi Hotels IPO To Open On 14th Sept, GMP Jumps 8% Ahead of Bidding

For its initial public offering, SAMHI Hotels Ltd. has set the price range of Rs. 119 to Rs. 126 per equity share. The company's initial public offering (also known as "IPO" or "Offer") will be offered for subscription starting on September 14, 2023, and it will end on September 18, 2023. The public offering of equity shares with a face value of Rs 1 includes a fresh issue of shares worth Rs 1200 crore and an offer for sale (OFS) of up to 13.50 million shares. Investors may place a minimum bid of 119 equity shares and any additional bids in multiples of 119 equity shares.

Ahead of the launch of its initial public offering (IPO), Blue Chandra Pte. Ltd offloaded 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 acquired a stake in Gurugram-based SAMHI Hotels for Rs 130 crore.

While money earned from the OFS would go to the selling shareholders, the company will use the net fresh issue proceeds primarily to pay off debts totalling Rs 900 crore. On a consolidated basis, it has an outstanding debt of Rs 2,812.5 crore as of June 2023, including Rs 142.9 crore in fully compulsorily convertible debentures (FCCDs).

According to a statement released by the company, SAMHI Hotels Limited acquires or builds primary hotels and thereafter renovates, rebrands, re-rates the property and runs it efficiently. It has only been in operation for 13 years, yet in the last fiscal year (FY23), it gained 369 keys, making it the third-largest hotel owner by key count. As a result of the ACIC Acquisition's successful completion on August 10, 2023, its portfolio has grown to 4,801 keys across 31 operating hotels. It has property available in MIDC, Navi Mumbai, to build a 350-key hotel. SAMHI will gain access to new cities like Jaipur with the purchase, and it will also increase its inventory and market share in Hyderabad, Pune, Chennai, and Ahmedabad.

Additionally, it plans on broadening its footprint to 14 key urban customer centres by adding two more hotels and 617 keys in existing cities as well as two new cities, Kolkata and Navi Mumbai, Maharashtra. Hyatt Regency in Pune, Courtyard by Marriott in Bengaluru, Four Points by Sheraton in Ahmedabad and Vizag, Fairfield by Marriott in Chennai Sriperembudur, Coimbatore, Goa, Kharadi, Bengaluru, and Holiday Inn Express in Ahmedabad, Bengaluru, Pune, Gurgaon, Hyderabad, Nashik, and Chennai are a few of the well-known brands in its portfolio.

The issue's book-running lead managers are JM Financial Limited and Kotak Mahindra Capital Company Limited.

SAMHI Hotels IPO GMP

Market watchers believe that the SAMHI Hotels IPO latest GMP is Rs 10 as of Sep. 12, 2023, 6:03 AM. The anticipated listing price for the SAMHI Hotels IPO is Rs. 136 (cap price + the current GMP), considering an upper price band of 126.00. As a result, the grey market predicts that SAMHI Hotels will list on BSE and NSE on September 27, 2023, at a premium of 7.94%.

Samhi Hotels IPO Review

AR Ramachandran from Tips2Trades said, "Even though broader markets remain euphoric, poor return ratios despite strong revenue growth coupled with extremely high debt make Samhi Hotels IPO a very expensive buy at the current valuations. Investors should wait for lower prices post listing to buy for better returns."

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