Samhi Hotels IPO Details:
Samhi Hotels, a company backed by Equity International, ACIC Mauritius, and Goldman Sachs, is gearing up for its much-anticipated initial public offering (IPO), scheduled to open on September 14, 2023. Although the price band is yet to be disclosed, reliable sources have hinted that the IPO is set to raise approximately Rs 1,400 crore.
Samhi Hotels IPO Size:
This Samhi Hotels IPO consists of two components: a fresh issuance of shares worth Rs 1,200 crore and an offer-for-sale (OFS) of 1.35 crore equity shares by three existing shareholders.
Notably, the fresh issuance size has been revised upward from the earlier Rs 1,000 crore to Rs 1,200 crore, and the OFS size has also increased from 90 lakh shares to 1.35 crore shares.
In the OFS, Singapore-based Blue Chandra Pte Ltd, owned by Equity International Fund V, will offload 84.28 lakh equity shares, while Goldman Sachs Investments Holdings (Asia) and GTI Capital Alpha will be selling 49.31 lakh and 1.4 lakh shares, respectively.
The proceeds from the fresh issue will primarily be allocated to repay debts amounting to Rs 900 crore, with the remainder dedicated to general corporate purposes. Meanwhile, the funds generated from the OFS will go to the selling shareholders. As of June 2023, Samhi Hotels had outstanding borrowings totaling Rs 2,812.5 crore on a consolidated basis, including Rs 142.9 crore of Foreign Currency Convertible Debentures (FCCDs).
Samhi Hotels, a privately held entity, has reserved 75 percent of the issue size for qualified institutional buyers (QIBs), 15 percent for high net worth individuals (HNIs), and the remaining 10 percent for retail investors.
Investors keen on participating in the IPO should mark September 18 as the closing date. Additionally, the anchor book, which is part of the QIB segment, will open for a day on September 13.
Samhi Hotels Financial Performance:
While Samhi Hotels reported losses in the past, there are signs of improvement. In the financial year ending March 2023, the consolidated net loss stood at Rs 338.6 crore, a significant reduction from Rs 443.25 crore in the previous year. This improvement can be attributed to robust operating figures and a strong topline performance.
In FY23, consolidated revenue from operations witnessed remarkable growth, surging by 129 percent year-on-year to reach Rs 738.6 crore. The EBITDA (earnings before interest, tax, depreciation, and amortization) exhibited substantial growth, increasing nearly 21-fold from Rs 11.4 crore to Rs 237.7 crore, with the margin expanding sharply from 3.54 percent to 32.2 percent during the same period.
Over the course of 12 years, Samhi Hotels has built a portfolio of 3,839 keys spread across 25 operating hotels in 12 of India’s prominent urban consumption centers, including Bengaluru, Hyderabad, the National Capital Region, Pune, Chennai, and Ahmedabad as of March 2023. Following the completion of the ACIC acquisition on August 10, 2023, the portfolio has grown to encompass 4,801 keys across 31 operating hotels.
The company primarily acquires or builds business hotels and takes steps to upgrade properties while partnering with established branded hotel operators to position the hotels effectively within the market. After the one-time property upgrade, Samhi Hotels leverages its in-house and proprietary asset management tools and capabilities to enhance the ongoing financial and operational performance of the property.
Samhi Hotels IPO Shareholders:
Among the notable shareholders, Blue Chandra holds the largest stake in the professionally managed company, with a 30.65 percent ownership. ACIC Mauritius I & II collectively hold a 30.51 percent stake, while Goldman Sachs Investments Holdings (Asia) has a 17.94 percent shareholding. GTI Capital Alpha and Sarvara Investment Fund I own 11.20 percent and 6.68 percent stakes, respectively.
Samhi Hotels IPO Important Dates:
The company will finalize the basis of allotment of IPO shares in consultation with the BSE by September 22, with eligible investors receiving their shares in their demat accounts by September 26. Refunds for unsuccessful investors will be credited to their bank accounts by September 25.
Samhi Hotels, a prominent branded hotel ownership and asset management platform, is set to make its debut on the BSE and NSE on September 27, 2023.
Samhi Hotels IPO Registrar:
JM Financial and Kotak Mahindra Capital Company are the designated merchant bankers for this IPO, with KFin Technologies serving as the registrar.
About Samhi Hotels:
SAMHI Hotels Limited functions as a hospitality establishment specializing in hotel ownership and development. The company provides a range of services, including lodging, wedding venues, seminar facilities, dining options, bars, suites, spa facilities, and lounges. SAMHI Hotels caters to a diverse clientele within India.
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