SAMHI Hotels IPO Witness Dull Demand On Day 1; Latest Subscriptions, GMP Here

Prominent branded hotel ownership and asset management platform in India, SAMHI Hotels received a dull response on the first day of its initial public offering (IPO) on September 14. The company plans to raise up to Rs 1,370.10 crore from its public offer. Subscriptions in this IPO will be available till September 18.

As per NSE data, the IPO received bids of 43,32,076 equity shares, a subscription of 7% from the total offering size of 6,25,29,831 equity shares.

On Day 1, Retail Individual Investors (RIIs) category subscribed by 34% against its total reserved portion of 1,14,34,033 equity shares. While non-institutional investors (NIIs) subscribed by 2% against the reserved size of 1,71,51,050 equity shares for the category. Lastly, the qualified institutional buyers (QIBs) showed dull demand towards its reserved size of 3,39,44,748 equity shares.

Also, the grey market premium of the IPO was at Rs 10 per share on September 14. As per the TopShareBrokers report, with a price band of 126.00, SAMHI Hotels IPO's estimated listing price is ₹136 (cap price + GMP). The expected percentage gain/loss per share is 7.94%.

Friday will be the second day of the IPO. Subscriptions will not be available on September 16th and 17th due to the weekend holidays. The IPO will close on September 18.

The 100% book building has 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.

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.

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 our 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.

On the completion of the acquisition of ACIC Acquisition on August 10, 2023, the company's portfolio has further increased to 4,801 keys across 31 operating hotels.

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.

The equity shares proposed in the IPO will be listed on BSE and NSE.