The initial public offering (IPO) of SAMHI Hotels Ltd will open for subscription on Thursday, (September 14), and the three-day bidding process will conclude on Monday (September 18).

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The hotel chain player has fixed a price band of Rs 119 to Rs 126 per equity share for its maiden public offer, and investors can bid for a minimum of 119 equity shares and in multiples thereafter.

At the upper price band, the company is looking to raise Rs 1,370 crore from its primary offering. The IPO comprises of fresh issuance of equity shares worth Rs 1,200 crore and an offer for sale (OFS) of up to 1.35 crore equity shares.

Under the OFS, Blue Chandra Pte will sell 84.2 lakh shares, Goldman Sachs to offload up to 49.31 lakh equity shares and GTI Capital Alpha will sell 1.4 lakh shares.

Proceeds from the issue worth Rs 900 crore will be utilised towards repaying debt and the remaining for general corporate purposes. Proceeds from the OFS will go to the selling shareholders of the hotel chain player.

The offer is being made through the book-building process where about 75 percent of the IPO has been set aside for qualified institutional buyers, 15 percent reserved for non-institutional investors, and the remaining 10 percent for retail investors.

Blue Chandra sells Rs 130 cr shares in Samhi Hotels to Madhuri Madhusudan Kela

Ahead of the issue opening, Blue Chandra Pte Ltd, the subsidiary of Equity International Fund V, sold Rs 130 crore equity shares in Samhi Hotels for Rs 126 per share.

Blue Chandra sold 23.8 lakh shares, or a 1.94 percent pre-offer stake, worth Rs 30 crore to Madhuri Madhusudan Kela, wife of ace investor Madhusudan Kela, and 55.55 lakh shares, or a 4.52 percent pre-offer stake, worth Rs 70 crore to Nuvama Crossover Opportunities Fund on September 6.

Also, San Francisco-based venture capital firm TIMF Holdings bought 23.8 lakh shares (1.94 percent pre-offer stake) worth Rs 30 crore in Samhi Hotels from Blue Chandra on September 8.

Before this stake sale, the Singapore-based investment firm Blue Chandra was the largest shareholder in the branded hotel ownership and asset management platform.

Following the stake sale, the shareholding of Blue Chandra in privately held Samhi Hotels has reduced from 30.65 percent to 22.25 percent of the pre-offer paid-up equity share capital.

Accordingly, now, it is the second largest shareholder after ACIC Mauritius, which holds a 30.51 percent stake in the firm.

JM Financial and Kotak Mahindra Capital Company are the book-running managers to the issue, while Kfin Technologies is the registrar.

The equity shares of the company are proposed to be listed on both BSE and NSE.

For the year ended on March 31, 2023, SAMHI Hotels reported a net loss of Rs 338.59 crore and a revenue of Rs 761.43 crore. The company's net loss stood at Rs 443.25 crore with a revenue from operations at 333.10 crore in the previous year ended March 2022.

SAMHI Hotels acquires or builds primary hotels and thereafter renovates, rebrands, re rates the property and runs it efficiently. In 13 years, it added 369 keys in the last financial year (FY23).

The company has a portfolio of 4,801 keys across 31 operating hotels in 14 of India's key urban consumption centers, including Bengaluru, Hyderabad, National Capital Region (NCR), Pune, Chennai, and Ahmedabad, Gujarat as of March 31, 2023. The company also has 2 hotels under development with a total of 461 keys in Kolkata and Navi Mumbai.

First Published:Sept 11, 2023 6:37 PM IST