SAMHI Hotels IPO: What you need to know

Date : 14/09/2023
Read: 3 mins

SAMHI Hotels IPO has hit the market, but is it worth checking in? We break down the key details to help you make an informed decision.

SAMHI Hotels, a prominent hotel ownership and asset management platform, is all set for its Initial Public Offering (IPO). But is it the right fit for your investment portfolio? Let's dive into the details.

Highlights:

The SAMHI Hotels IPO offers shares at a price band of Rs 119–126 per share, aiming to raise Rs 1,370 crore.
They boast the third-largest key inventory, coupled with a diversified brand presence and strong industry demand.
The company faces risks such as three consecutive years of losses, high net debt, and a reliance on short-term borrowings.

10 Important things you must know about SAMHI Hotels IPO

1. About the company.

SAMHI Hotels Ltd., a leading hotel ownership and asset management platform in India, is making waves with its initial public offering (IPO). With a robust portfolio of over 4,800 keys across 31 operating hotels in key urban centres, SAMHI Hotels has established its presence in the hospitality sector.

2. About the offer

The IPO, with an issue size of Rs 1,370 crore, comprises a fresh issue of equity shares worth Rs 1,200 crores and an offer for sale (OFS) of up to Rs 170 crores. The price band is set at Rs 119–126 per equity share.

Also Read: Yatra Online: Do You Know Enough About This Upcoming IPO?

3. IPO key information

4. Reservations

5. The objective of the issue

The proceeds from the fresh issue will be employed to repay debts of approximately Rs 900 crores, with the remainder allocated for general corporate purposes.

6. Financial snapshot

7. Parties to the Issue

Kotak Mahindra Capital Company and JM Financial are the book-running lead managers, whereas KFin Technologies is the registrar.

8. Strengths

SAMHI Hotels boasts the third-largest inventory of operational keys in India's hospitality sector.
A multi-brand presence across various price points positions the company well in the market.
Favourable industry macros, including high domestic travel demand and improved occupancy levels.

9. Risks

SAMHI Hotels reported losses in the last three years, signalling financial instability.
The company carries a significant net debt burden, which may impact future financial performance.
Intensive reliance on short-term debt for working capital requirements poses a potential risk.