The Initial Public Offering (IPO) for Samhi Hotels closed on Monday, with a 1.02 times subscription. The IPO, which opened for subscription on Thursday, September 14, and closed on Monday, September 18, received bids for 6,40,50,560 shares against the 6,25,29,831 shares on offer.
Segment-wise, the retail investors' portion was subscribed 83%, non-institutional investors' portion received 27% subscription, and the Qualified Institutional Buyers (QIB) category was subscribed 1.47 times. On its opening day, the IPO recorded a subscription status of just 7%, which increased to 12% by the second day.
The Gurugram-based company has set the IPO price band between ₹119 to ₹126 per equity share of face value of ₹1 each. Through this public issue, Samhi Hotels aims to raise ₹1,370.10 crore ($184 million), out of which ₹1,200 crore ($161 million) is expected from fresh issue and the remaining ₹170.10 crore ($23 million) via an Offer For Sale (OFS) route.
Before the IPO opening, Blue Chandra Pte. Ltd sold 10.32 million shares or 8.4% of the company to Madhuri Kela, wife of renowned investor Madhusudan Kela, along with Nuvama Crossover Opportunities Fund and TIMF Holdings for a total consideration of ₹130 crore ($17 million). Furthermore, Samhi Hotels raised ₹616.50 crore ($83 million) from anchor investors on Wednesday, September 13.
Samhi Hotels Ltd's business model revolves around acquiring or constructing first-class hotels before renovating and rebranding them for successful management. Despite being in operation for only 13 years, the company added 369 keys in the most recent fiscal year (FY23), making it the third-largest hotel owner in terms of keys.
The company plans to use the net proceeds from the fresh issue towards payment of debt and for general corporate purposes. JM Financial and Kotak Mahindra Capital Company are serving as book running lead managers for the IPO, while Kfin Technologies is the IPO registrar.
Post-IPO, Samhi Hotels share allotment will tentatively take place on Friday, September 22. Those allotted shares will receive them in their Demat accounts on Tuesday, September 26. The refund process for those who did not get shares will begin on Monday, September 25. Samhi Hotel IPO shares will be listed on NSE and BSE on Wednesday, September 27.
The grey market premium (GMP) for Samhi IPO today stands at +10, similar to the previous trading session. Considering the upper end of the IPO price band and the current premium in the grey market today, the estimated listing price of Samhi Hotels share price is ₹136 apiece, which is 7.94% higher than the IPO price of ₹126. GMP indicates investors' readiness to pay more than the issue price.
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