Are you looking to enter an investment with a high growth potential? Then, look no further than Samhi Hotel Limited IPO which will go live this month. SAMHI is a leading hotel ownership and asset management company in India and has filed its RHP (Red Herrington Prospectus) with the Securities and Exchange Board of India.
You need to conduct minute research before investing in a company’s IPO. This includes checking both the pros and cons of investing and the risks involved. Going through the RHP of the company will provide a detailed overview.
In case you don’t have the time, give this blog a quick read. You’ll get the crucial information required.
Additional Read: How does an IPO work?
Table of Content
Samhi Hotels IPO Details
SAMHI intends to raise around ₹1,200 crore from its Initial Public Offering, which will remain open from 14th to 18th September of this year. Here are all the important details:
| IPO Open Date | 14th September, 2023 |
| IPO Close Date | 18th September, 2023 |
| Total Issue Size | Around ₹1370.10 crore |
| Fresh Issue Size | Around ₹1200 crore |
| Offer for Sale Size | Around ₹170.10 crore (1,35,00,000 shares) |
| IPO Type | Book-building IPO |
| IPO Purpose | Debt repayment and general corporate purpose |
| Price Band | ₹119 to ₹126 per share |
| Face Value | ₹1 per share |
| Minimum Lot Size (Retail) | 119 shares |
| Maximum Lot Size (Retail) | 1,547 shares |
| Listing at | NSE and BSE |
About the Company
SAMHI Hotels Limited is a reputed name as it has a long-standing tie-up with three of the most famous and well-known international hotel operators—Marriott, Hyatt and IHG. It’s an important hotel ownership and asset management platform in India, as already mentioned and boasts of a diverse geographic presence.
Its institutional ownership model, professional management team and experienced leadership have catapulted it to heights of success. SAMHI Hotels Limited has 31 operating hotels across 14 cities in India including Delhi, Pune, Bangalore, Hyderabad and Chennai. Moreover, two more of its hotels are coming up in Kolkata and Navi Mumbai.
SAMHI Hotels Limited firmly believes in its core values of integrity, excellence and distinction. It remains committed to delivering high returns for its stakeholders and funding partners.
IPO Tentative Timeline
Check the important dates for the Samhi Hotels IPO:
| Anchor Bidding Date | 13th September, 2023 |
| Opening Date | 14th September, 2023 |
| Closing Date | 18th September, 2023 |
| Cut-off Time for UPI Mandate | 5 p.m., 18th September, 2023 |
| Basis of Allotment | 22nd September, 2023 |
| Refund Initiation Date | 25th September, 2023 |
| Credit of Shares to Demat Account | 26th September, 2023 |
| Listing Date | 27th September, 2023 |
IPO Lot Size
Check the lot sizes for different investor categories here:
| Application Type | Number of Lots | Amount |
| Retail (Min) | 1 (119 equity shares) | ₹14,994 |
| Retail (Max) | 13 (1,547 equity shares) | ₹1,94,922 |
| S-HNI (Min) | 14 (1,666 equity shares) | ₹2,09,916 |
| S-HNI (Max) | 66 (7,854 equity shares) | ₹9,89,604 |
| B-HNI (Min) | 67 (7973 equity shares) | ₹10,04,598 |
Strengths of the Company
Let’s look at the strengths of SAMHI Hotels Limited. These qualitative factors will help you understand the company’s position in the market:
- SAMHI Hotels Limited has, in the past, acquired dislocated hotels, rebranded and renovated them improving hotel performance and re-ratings significantly.
- The company has a strong record of managing hotels efficiently.
- The sheer scale and diversification of their portfolio have been further enhanced by sector tailwinds.
- SAMHI Hotels Limited has an experienced governance and management team.
- The company also has a strong ability to use analytics tools and create operating efficiencies and long-term performance.
Also Read: Benefits of Investing in IPO
Risks Involved
While noting down the strengths of a company is always important, it would be wise for you to take into account the risks involved with investments. Here are the main risks of the SAMHI Hotels IPO:
- The company didn’t comply with some of the covenants mentioned under certain financing agreements in the past. If any such non-compliance takes place in the future, it will have a negative impact on the overall business of SAMHI.
- The company has seen restated losses and negative net worth in the recent past.
- SAMHI Hotels Limited may face challenges to grow its business due to its indebtedness, terms and conditions and restrictions imposed by financing arrangements.
Why Should You Invest in SAMHI Hotels IPO?
SAMHI Hotels Limited is associated with known names like Marriott and Hyatt. Its hotels function under well-established hotel operator brands such as Hyatt Regency, Sheraton, Courtyard by Marriott and Fairfield by Marriott. Incorporated in 2010, the company counts GTI Capital, Sam Zell-led Equity International and International Finance Corporation as its shareholders.
Company Financials
Let’s look at some of its key financials:
| Particulars | For the Financial Year Ending (in Rs. million) | ||
| March 31, 2023 | March 31, 2022 | March 31, 2021 | |
| Total Assets | 22,630.03 | 23,865.76 | 24,880.01 |
| Total Liabilities | 30,706.49 | 30,254.16 | 26,834.90 |
| Total Expenses | 5,008.25 | 3,113.11 | 2,389.64 |
| Total Revenue | 7,614.20 | 3,331.04 | 1,792.50 |
| Loss After Tax | (3,385.86) | (4,432.53) | (4,777.27) |
| EBITDA | 2797.79 | 33.87 | (609.76) |
Summary
The overview of SAMHI Hotel’s IPO provided above will surely guide you in making an informed investment decision. While it’s always advisable to go through the RHP minutely, not everyone can have the time to do it. So, we have presented above some of the key information which will help you in your investment journey.
