Samhi Hotels Shares Debut on Bourses at a Premium

Samhi Hotels Shares Debut on Bourses at a Premium.

Samhi Hotels Listing on Bourses

Samhi Hotels Ltd witnessed a strong debut on the stock exchanges, with its shares listing at a premium on Friday. On the National Stock Exchange (NSE), Samhi Hotels’ share price was listed at ₹134.50 per share, reflecting a 6.7% increase over the issue price of ₹126. Meanwhile, on the Bombay Stock Exchange (BSE), Samhi Hotels’ share price debuted at ₹130.55 per share.

Samhi Hotels IPO Overview

The Samhi Hotels IPO opened for subscription from Thursday, September 14, and closed on Monday, September 18. The IPO received an impressive response, with a subscription rate of 5.33 times on the third day of subscription.

IPO Price Band and Fundraising

The price band for the Samhi Hotels IPO was set in the range of ₹119 to ₹126 per equity share, with a face value of ₹1 each. The company aimed to raise ₹1,370.10 crore through this public issue, with ₹1,200 crore from a fresh issue of shares and ₹170.10 crore via the offer-for-sale (OFS) route. Investors could subscribe to the IPO in multiples of 119 equity shares.

Anchor Investor Allocation

Samhi Hotels raised ₹616.50 crore from anchor investors on September 13, a day before the IPO opened for public subscription.

Samhi Hotels IPO Subscribed 1.02 Times as Subscription Nears Closing

Company Background and Utilization of Funds

Samhi Hotels Ltd specializes in acquiring or constructing premium hotels, followed by renovation, rebranding, and efficient management. Despite being in operation for just 13 years, it added 369 keys in the recent fiscal year (FY23), establishing itself as the third-largest hotel owner in terms of keys. The company plans to utilize the net proceeds from the fresh issue to repay debt and for general corporate purposes.

IPO Management

JM Financial and Kotak Mahindra Capital Company served as the book running lead managers for the IPO, with Kfin Technologies acting as the IPO registrar.

Grey Market Premium (GMP)

The grey market premium (GMP) for Samhi Hotels IPO stood at +8 on the day of listing, indicating investor readiness to pay more than the issue price. This was an increase from +5 observed during the previous trading session. Considering the upper end of the IPO price band and the current GMP, the estimated listing price of Samhi Hotels shares was ₹134 apiece, marking a 6.35% premium over the IPO price of ₹126.

Investor Enthusiasm

The strong investor response to the IPO and its premium listing reflected positive sentiment towards Samhi Hotels in the market.