Samhi-Hotels-Limited-IPO
September has been quite busy for the IPO market with back-to-back IPO opportunities for the investors. The newest IPO opportunity is from the hospitality sector in the form of Samhi Hotels Limited.
Samhi Hotels Limited IPO will open for subscription from 14th September 2023 to 18th September 2023.
Here are all the important details of Samhi Hotels Limited IPO, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.
The key details of Samhi Hotels Limited IPO are as under.
The size of the IPO and different categories of the issue are:
| Category | Details |
| IPO Opening Date | 14th September 2023 |
| IPO Closing Date | 18th September 2023 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face value of shares | Re. 1 per share |
| IPO Price Band | Rs. 119 – Rs. 126 per share |
| IPO Size | Rs. 1370 crores |
| Offer for Sale | Rs. 170 crores |
| Fresh Issue | Rs. 1200 crores |
The important dates for Samhi Hotels Limited IPO are highlighted below:
| Event | Date |
| Opening date | 14th September 2023 |
| Closing Date | 18th September 2023 |
| Allotment date | 22nd September 2023 |
| Refund Date | 25th September 2023 |
| Share Credit Date | 26th September 2023 |
| Listing Date | 27th September 2023 |
Investors can subscribe to Samhi Hotels Limited IPO shares in pre-defined lots. The details of the lot sizes for this IPO are mentioned below:
| Category | Details |
| Investments in lots | Minimum – 1 lot Maximum – 13 lots |
| Investment amount | Minimum – Rs. 14,161 – 14,994 Maximum – Rs. 1,94,922 |
| Shares | Minimum – 119 Maximum – 1547 |
Here’s the summary of reservation for different applicant categories in this IPO:
| Category of Investor | Reservation Percentage |
| Retail Individual Investor | 10% |
| QIB (Qualified Institutional Buyer) | 75% |
| NII (Non-Institutional Bidders) | 15% |
This IPO is a combination of Offer for Sale and Fresh Issue. The objectives of the IPO are mentioned below,
Samhi Hotels Limited was established in 2010 and stands as a prominent player in the Indian hospitality sector, specializing in branded hotel ownership and asset management. Samhi boasts an extensive collection of hotels comprising a total of 4,801 rooms spread across 31 operational properties. These hotels are strategically located in 14 major urban hubs across India, including Bengaluru, Hyderabad, the National Capital Region (NCR), Pune, Chennai, and Ahmedabad. Samhi Hotels Limited possesses a diverse hotel portfolio, has active expansion endeavours, and robust collaborations with renowned hotel operators, ensuring top-tier service and brand recognition across their properties.
As of March 31, 2023, Samhi Hotels is in the process of expanding its portfolio with two upcoming hotels in Kolkata and Navi Mumbai, adding a total of 461 rooms. Samhi Hotels strategically acquired Asiya Capital and the ACIC SPVs on August 10, 2023, expanding their portfolio by 962 rooms across six operational hotels and gaining land for a future hotel development in Navi Mumbai, Maharashtra. Samhi’s hotels are partnered with prestigious and renowned hotel brands like Courtyard by Marriott, Sheraton, Hyatt Regency, Hyatt Place, Fairfield by Marriott, Four Points by Sheraton, and Holiday Inn Express, granting them access to a host of benefits, including loyalty programs, expert management, industry-leading practices, online reservation systems, and highly effective marketing strategies.
Samhi Hotels Limited’s financials are given in the table below:
| Year | Total Assets (Rs. in cr) | Revenue from Operations (Rs. in cr) | Profit After Tax (Rs. in cr) | Basic EPS |
| Mar-2023 | 2263 | 738 | (339) | (Rs.43.93) |
| Mar-2022 | 2387 | 323 | (443) | (Rs.58.12) |
| Mar-2021 | 2488 | 169 | (478) | (Rs.62.64) |
Some of the key strengths of Samhi Hotels Limited IPO that investors can take note of are
| Category | Details |
| Business model | SAMHI Hotels Limited has developed proprietary tools for managing and improving hotel performance, utilizing analytics to enhance operational efficiency and profitability.The company’s portfolio benefits from its significant scale and diversification, further amplified by favourable industry trends.SAMHI boasts a proven track record of acquiring and successfully revitalizing hotels, contributing to its growth. |
| Other merits | With a varied geographic presence that covers essential consumption hubs in India, SAMHI stands out as the holder of India’s third-largest inventory of operational keys (owned and leased) as of March 31, 2023, affirming its significant role in the hospitality sector. |
Here are some of the risks that investors of Samhi Hotels Limited IPO should know:
| Category | Details |
| Business viability and profitability | Inability to realize anticipated growth and synergies from acquisitions, coupled with a track record of restated losses and negative net worth.The company faces challenges in obtaining waivers for covenant violations within financial agreements, compounded by inadequate cash flow to sustain the capital-intensive industry requirements. |
| Other concerns | The company is part of a fragmented industry with fierce competition from large and small players as well as susceptibility to operational fluctuations driven by seasonal and cyclical variations. |
As of September 14th, 2023, the grey market premium for the shares of Samhi Hotels Limited IPO is Rs. 14 as per market observers. This means the shares are expected to list at a premium of Rs. 14 over the listing cap price of Rs. 126.
The company is part of the hospitality sector that has seen some difficulty during the COVID and post-COVID period. The sector has, however, seen recovery over the past couple of years which is also reflected in the company’s performance in FY 2023. Investors should, therefore, analyse the core fundamentals of the company and its historical performance to make effective investment decisions.
Investors can invest in this IPO through the Fisdom app.
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