Samhi Hotels Limited IPO: All you need to know

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Samhi Hotels Limited IPO

Samhi Hotels Limited is offering shares to the public from 14 September 2023 to 18 September 2023. Each share costs between ₹119 and ₹126 and has a face value of ₹1. You can buy a minimum of 119 shares for ₹14,994. They plan to list these shares on 27 September 2023. The total value of this offering is ₹1,370.10 Crores, which includes a fresh issue worth ₹1200 Crores and an offer for sale worth ₹170.10 Crores.

Samhi Hotels Limited IPO: Business Overview

Samhi Hotels holds 4,801 rooms in 31 hotels located in 14 key cities in India. These cities include Bengaluru, Karnataka; Hyderabad, Telangana; the National Capital Region; Pune, Maharashtra; Chennai, Tamil Nadu; and Ahmedabad, Gujarat as recorded on March 31, 2023. Furthermore, they're preparing to open 2 new hotels with 461 rooms in Kolkata and Navi Mumbai.

They use a strategy focused on buying and improving hotels. They mainly buy business hotels and make them better. Once they've improved a hotel, they team up with well-known hotel brands to help it stand out in the market. After these initial improvements, they use their own tools and methods to keep improving the hotel's finances and operations.

On August 10, 2023, the company bought Asiya Capital and the ACIC SPVs. This purchase gave them 962 more rooms in six hotels and land to build a new hotel in Navi Mumbai, Maharashtra.

Samhi Hotels Limited IPO: Details

IPO Open and Close DateSep 14, 2023 to Sep 18, 2023
IPO price range₹119 to ₹126 per share
Lot Size119 Shares
IPO size₹1,370.10 Cr
Basis of AllotmentFriday, 22 September 2023
Credit of Shares to DematTuesday, 26 September 2023
Listing DateWednesday, 27 September 2023

(Source: DRHP)

Samhi Hotels Limited IPO: Reservations

QIB Shares OfferedNot more than 50% of the Net Offer
NII (HNI) Shares OfferedNot less than 15% of the Net Offer
Retail Shares OfferedNot less than 35% of the Offer

(Source: DRHP)

JM Financial Limited and Kotak Mahindra Capital Company Limited have been appointed as the book-running lead managers for the Samhi Hotels Limited IPO, while KFin Technologies Limited will serve as the registrar to the issue. The shares are expected to be listed on both BSE and NSE, with a tentative listing date of September 27, which falls on a Wednesday.

The Objective of the Issue:

The company plans to use the money raised from the issue for the following purposes:

  • Repayment, in full or in part, of certain borrowings availed of by the company and the subsidiaries including payment of the interest accrued thereon.
  • General corporate purposes.

Samhi Hotels Limited  IPO: Financial Performance

ParticularsFY23(in Rs Crores)FY22(in Rs Crores)FY21(in Rs Crores)
Total Revenue761.42333.1179.25
Profit/Loss After Tax-338.95-443.25-477.72
Current Assets247.23223.67216.16
Current Liabilities933.68405.32722.45

(source: DRHP and RHP)

The Current Assets have increased from ₹ 223.67 Crores in March 2022 to ₹ 247.23 Crores in March 2023, with an increase of 10.53% indicating overall Asset performance.

In terms of revenue, the Company has experienced significant growth in operating revenue resulting in an increase in Total revenue, rising from ₹ 333.10 Crores in FY22 to ₹ 761.42 Crores in FY23, with a conspicuous increase of 128.58%. Moreover, the company is facing financial setbacks. However, there's a silver lining as the losses diminished from ₹ -443.25 Crores in FY22 to ₹ -338.95 Crores in FY23, marking a 23.52% reduction. This decline indicates a move in the right direction.

Key Performance IndicatorValues
EPS (Rs)-43.93
P/E (x)NA

(Source: DRHP)

Samhi Hotels Limited IPO: Strengths

The company is good at buying struggling hotels and has a history of improving them through renovations or changing their brand.

The company's collection of assets grows and becomes more varied due to positive industry trends.

The company has good experience in running hotels efficiently.

The company is skilled at using data tools to improve operations and achieve lasting success.

The company excels with its trustworthy leadership and experienced management team.

 Samhi Hotels Limited IPO: Peer Comparison

Name of the CompanyRevenue (In Crore)PAT (In Crore)EPS ( in Rs)P/E RatioMcap (In Crore)
Samhi Hotels Limited761.42-338.95-43.93NANA
Chalet Hotels345.7839.178.9461.6411,615.68
Lemon Tree254.7359.011.4575.269,316.82
Indian Hotels1654.54338.847.0659.6359,734.94

(Source: BSE Results)

(As on 31st, March 2023)