September 18, 2023
Retail Segment Fully Subscribed
Gurugram-based SAMHI Hotels Limited is a branded hotel ownership and asset management platform
MUMBAI, Sep 18 (The CONNECT) -The Initial Public Offering of Gurugram-based SAMHI Hotels Limited 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, the data available on the stock exchanges shows.
Qualified Institutional Buyer Portion was subscribed 8.82 times, Non-Institutional Investors Portion 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).
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.
