Samhi Hotels IPO: Issue Fully Subscribed by 5.33x On Day 3; What GMP Signals For Listing?

Samhi Hotels IPO: The company's Rs 1,370.10 crore initial public offering (IPO) oversubscribed by 5.33 times on the last day of the issue. Qualified institutional buyers showed robust demand on Day 3, while the non-institutional and retail investors portion fully subscribed as well. The equity shares proposed in the IPO will list on BSE and NSE.

On Day 3, the IPO received consolidated bids of 33,30,05,911 equity shares as compared to the offered size of 6,25,29,831 equity shares, registering an oversubscription of 5.33 times. Till Day 2, the IPO had received tepid demand with merely 12% subscription of the total size.

On the last day, the Retail Individual Investors (RIIs) category subscribed by 1.11 times against its total reserved portion of 1,14,34,033 equity shares. While non-institutional investors (NIIs) subscribed by 1.22 times against the reserved size of 1,71,51,050 equity shares for the category. The qualified institutional buyers (QIBs) who showed dull biddings on Day 1 and 2, emerged as massive bidders towards the IPO as this investors category oversubscribed by 8.82 times against reserved size of 3,39,44,748 equity shares.

Meanwhile, the grey market premium (GMP) of the IPO is at Rs 4 per share on September 19. As per TopShareBrokers, with the price band of 126.00, SAMHI Hotels IPO's estimated listing price is ₹130 (cap price + today's GMP).The expected percentage gain/loss per share is 3.17%.

The IPO opened on September 14th and was available till 18th. The 100% book building had a price band of Rs 119 to Rs 126 per share having a face value of Rs 1 each. The bid lot size is 119 Equity Shares and in multiples thereof.

While JM Financial and Kotak Mahindra Capital Company are the book-running lead managers for the IPO, while Kfin Technologies is the registrar of the issue.

After the IPO, the allotment of equity shares is expected to take place on September 22, followed by initiation of refunds on September 25, and credit of shares in Demat accounts on September 26. As per Chittorgarh, the IPO is expected to list on September 27.

Samhi Hotels is a prominent branded hotel ownership and asset management platform. The company has the third largest inventory of operational keys (owned and leased) in India as of March 31, 2023. Within 12 years of starting its business operations, the company has built a portfolio of 3,839 keys across 25 operating hotels in 12 of India's key urban consumption centers, including Bengaluru (Karnataka), Hyderabad (Telangana), National Capital Region ("NCR"), Pune (Maharashtra), Chennai (Tamil Nadu) and Ahmedabad (Gujarat), as of March 31, 2023.

The company plans to utilise the net proceeds from the fresh issue for repayment of certain borrowings availed of by them and its subsidiaries including payment of the interest accrued thereon. A portion of the proceeds will also be used for general corporate purposes.