SAMHI Hotels IPO subscribed 5.33 times on Final Day
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Initial Public Offering of Gurugram-based SAMHI Hotels Limited is a branded hotel ownership and asset management platform in India was subscribed 5.32 times on the last day of bidding.
The issue received bids of 33,29,86,871 shares against the offered 6,25,29,831 equity shares, at a price band of ?119-126, according to the data available on the stock exchanges.
Qualified Institutional Buyer Portion was subscribed 8.82 times, Non-Institutional Investors Portion was subscribed 1.22 times. whereas, Retail Portion was subscribed 1,11 times.
Nirmal Bang, IDBI Capital, and Arihant Capital have given recommendations of a “SUBSCRIBE” rating to the issue.
Brokerage firms have stated that the company achieved impressive top-line performance, displaying a CAGR of 15.5% from FY20 to FY23, surpassing the average growth rate of listed peers, which stood at 7.9%. The company's adaptable approach to asset ownership enables it to procure properties across various price ranges within the hotel industry.
This flexibility also empowers the company to collaborate with multiple top-tier operators to carefully select the most suitable brands for each individual hotel. As on Mar’23, ROCE (proforma incl ACIC portfolio) stood at 6.6% which is further expected to improve on the back of debt repayment and growth planned for the upcoming few quarters.
The offering is priced at a multiple of 15.8x EV/EBITDA, based on the FY23 proforma financials, representing a discount compared to the average valuation of 30.2x EV/EBITDA for its publicly listed peers.
JM Financial Limited and Kotak Mahindra Capital Company Limited are the book running lead managers to the issue. The Equity Shares are proposed to be listed on BSE Limited and National Stock Exchange (NSE).
Company Information
SAMHI Hotels Limited acquires or builds primary hotels and thereafter renovates, rebrands, re rates the property and runs it efficiently. In just 13 years in business, it added 369 keys in the last financial year (FY23) to become the third largest hotel owner by number of keys.
Pursuant to the completion of the ACIC Acquisition on August 10, 2023, its portfolio has further increased to 4,801 keys across 31 operating hotels. It has land to build a 350 keys hotel in MIDC, Navi Mumbai. With the acquisition, SAMHI will get access to new cities like Jaipur and will improve its inventory and market share in Hyderabad, Pune, Chennai, and Ahmedabad. In addition, it plans to add two additional hotels and 617 keys in existing cities as well as two new cities, Kolkata and Navi Mumbai, Maharashtra increasing its presence to 14 key urban consumption centers.
Some of the marquee names in its portfolio are Hyatt Regency, Pune; Courtyard by Marriott, Bengaluru; Four Points by Sheraton Vizag; Fairfield by Marriott in (Chennai Sriperembudur, Coimbatore, Goa, Kharadi, Bengaluru) and Holiday Inn Express across Ahmedabad, Bengaluru, Pune, Gurgaon, Hyderabad, Nashik, and Chennai. It has a knowledge park Caspia Pro in Greater Noida, UP.
The table below shows subscription data for all the categories of investors:
