SAMHI Hotels IPO aims to raise INR 1370.10 crores. The IPO has two segments- fresh issue worth INR 1200 crores and offer for sale worth INR 170.10 crores. The IPO’s main objective is to prepay or repay a portion of the company’s and its subsidiary’s outstanding borrowings.
SAMHI Hotels Limited IPO – Important Details
| SAMHI Hotels IPO Date | 14th September 2023 to 18nd September 2023 |
| SAMHI Hotels IPO Listing Date | 27th September 2023 |
| SAMHI Hotels IPO Price | INR 119-126 per share |
| SAMHI Hotels IPO Lot Size | 119 Shares |
| SAMHI Hotels IPO Total Issue Size | Approx 1370.10 crores |
| SAMHI Hotels IPO Basis of Allotment | 22th September 2023 |
| SAMHI Hotels IPO Initiation of Refunds | 25th September 2023 |
| SAMHI Hotels IPO Credit of Shares to Demat | 26th September 2023 |
| SAMHI Hotels IPO Issue Type | Book Built Issue IPO |
| SAMHI Hotels IPO Listing At | BSE, NSE |
SAMHI Hotels Limited IPO – Company Profile
SAMHI Hotels is a prominent branded hotel ownership and asset management platform in India, with the third largest inventory of operational keys (owned and leased) in India as of March 31, 2023. Within 12 years of starting the business operations, the company has built a portfolio of 3,839 keys across 25 operating hotels in 12 of India’s key urban consumption centers, including Bengaluru, Hyderabad, National Capital Region (“NCR”), Pune, Chennai, and Ahmedabad, as of March 31, 2023.
Further, pursuant to the completion of the ACIC Acquisition on August 10, 2023, the Fairfield by Marriott portfolio has increased to 1,429 keys. The hotels typically have long-term management contracts with established and well-recognized global hotel operators such as Marriott, Hyatt, and IHG.
SAMHI Hotels IPO – Fundamental Analysis
Revenue Growth:
SAMHI Hotels has demonstrated substantial revenue growth, increasing from ₹1,695.80 million in 2021 to ₹7,385.70 million in 2023, indicating robust top-line performance.
Negative Equity:
The company has consistently reported negative equity, indicating that its liabilities exceed its assets. This raises concerns about the company’s financial stability.
Losses:
SAMHI Hotels has reported losses over the years, with a net loss of ₹3,389.57 million in 2023. This suggests operational challenges or inefficiencies.
Earnings Per Share (EPS):
Diluted EPS has improved from (₹62.64) in 2021 to (₹43.93) in 2023, but remains in negative territory.
Net Asset Value (NAV) per Equity Share:
NAV per equity share has been negative and deteriorated further from (₹33.99) in 2021 to (₹113.07) in 2023, indicating a weakened financial position.
Total Liabilities:
Total liabilities have consistently exceeded total assets, indicating a significant financial imbalance.
Summary:
SAMHI Hotels shows promising revenue growth, but persistent negative equity, losses, and negative NAV per equity share raise concerns about its financial stability. Investors should carefully assess these financial challenges before considering an investment.
SAMHI Hotels IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (₹ in millions) | 1,695.80 | 3 ,227.43 | 7 ,385.70 |
| Equity (₹ in millions) | (1,954.89) | (6,388.40) | (8,076.46) |
| Expenses (₹ in millions) | 2,389.64 | 3,113.11 | 5,008.25 |
| Profit and Loss After Tax (₹ in millions) | ( 4,777.93) | (4,433.51) | ( 3,389.57) |
| RoNW (%) | NA | NA | NA |
| Diluted EPS only (₹) | (62.64) | (58.12) | ( 43.93) |
| NAV per Equity Share (₹) | (33.99) | (92.12) | (113.07) |
| Total Assets (in millions) | 24,880.01 | 23,865.76 | 22,630.03 |
| Total Liabilities (in millions)
|
26,834.90 | 30,254.16 | 30,706.49 |
SAMHI Hotels Ltd IPO Peer Comparison
SAMHI Hotels’ total revenue is ₹7,385.70 million with negative earnings per share (EPS) and return on net worth (RoNW). In contrast, peers like Chalet Hotels, Lemon Tree, Indian Hotels, and EIH have stronger financial performance, making SAMHI’s IPO appear less attractive.
| Company | Total Revenue(₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| SAMHI Hotels | 7,385.70 | 1 | NA | (43.93) | (43.93) | NA | (113.07) |
| Chalet Hotels | 11,284.67 | 10 | 61.64 | 8.94 | 8.94 | 11.96% | 74.77 |
| Lemon Tree | 8,749.90 | 10 | 75.26 | 1.45 | 1.45 | 12.48% | 14.22 |
| Indian Hotels | 58,099.10 | 1 | 59.63 | 7.06 | 7.06 | 12.24% | 60.53 |
| EIH | 20,188.07 | 2 | 49.55 | 5.03 | 5.03 | 9.49% | 55.48 |
SAMHI Hotels Ltd IPO Objective
SAMHI Hotels aims to utilize the capital raised for debt repayment, focusing on INR 900 crores, and allocate the remaining funds for general corporate purposes, including expansion and technology advancements.
- Repayment or pre-payment of certain secured borrowing: The Company and its Subsidiaries have entered into various borrowing arrangements, including borrowings in the form of term loans, fund-based and non-fund-based working capital facilities, and the NCDs. As of 30th June 2023, the outstanding borrowing of the company was INR 2812.49 crores, and the company intends to use the raised funds to the extent of INR 900 crores to repay the borrowing.
- General corporate purpose: The company plans to deploy the balance funds towards the general corporate purpose, which is not limited to meeting expenses incurred in the ordinary course of business, such as strategic initiatives including the advancement of information technology, meeting future branches and business expansion, etc.
SAMHI Hotels Ltd IPO Risks And Challenges
SAMHI Hotels faces risks related to negative net worth and qualified audit reports, indicating financial instability and internal control concerns, which could impact investor confidence and the company’s financial performance.
- Negative net worth: The company has experienced negative net worth and losses in the last few years. Its restated loss and negative net worth for the year ending 31st March 2023 were INR (338.58 crores) and INR (871.43) crores, respectively.
- Qualified Audit Report: The audit report issued by the statutory auditor includes remarks on the going concern and inefficient internal control systems of the company and its subsidiaries.
SAMHI Hotels IPO- Industry & Market Potential
As of March 2023, India has over 360,000 keys including branded hotels, independently run hotels and aggregators. Of this, the current branded inventory market size as of March 2023 stands at approximately 180,000.
The demand for hotel rooms is closely linked to several factors such as macroeconomic policy, economic development and the growth of commercial real estate and tourism industries.
Indian hospitality sector is yet to achieve the hotel inventory vis-a-vis commercial stock ratio as seen in business districts across global mature markets, thus showing material headroom for further supply absorption without impacting capacity utilization.
Within 13 years of its inception, SAMHI Hotels became India’s third largest hotel owner by number of keys and has added approximately 369 keys to its portfolio per year as of March 31, 2023 (inclusive of the ACIC Portfolio), making them India’s fastest growing hotel owning entity by number of keys added per year in the last decade, as of March 31, 2023.
SAMHI Hotels IPO – Type of Offer
SAMHI Hotels IPO aims to raise INR 1370.10 crores. The IPO has two segments- fresh issue worth INR 1200 crores and offer for sale worth INR 170.10 crores. The IPO’s main objective is to prepay or repay a portion of the company’s and its subsidiary’s outstanding borrowings.
SAMHI Hotels IPO Offer Size
SAMHI Hotels IPO aims to raise INR 1370.10 crores. The IPO has two segments- fresh issue worth INR 1200 crores and offer for sale worth INR 170.10 crores.
SAMHI Hotels IPO Allotment Structure
SAMHI Hotels plans to allocate 75% of its IPO shares to Qualified Institutional Buyers (QIBs), 15% to Non-Institutional Investors (NIIs), and 10% to Retail Individual Investors (RIIs) in accordance with SEBI regulations.
- Qualified Institutional Buyers (QIB): As per SEBI regulations, 75% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
- Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs. 2 lakhs.
- Retail Individual Investors (RII): The remaining 10% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs. 2 lakhs.
How to apply for a SAMHI Hotels IPO?
To apply for the SAMHI Hotels IPO through Alice Blue, you would typically follow these steps:
- Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the SAMHI Hotels IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for SAMHI Hotels IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check SAMHI Hotels IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the SAMHI Hotels IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the SAMHI Hotels IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the SAMHI Hotels IPO:
- Registrar’s Website: Visit the website of KFin Technologies Limited, the registrar of the SAMHI Hotels IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
- NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
SAMHI Hotels Limited IPO Offer Registrar
The registrar for the SAMHI Hotels IPO is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
KFin Technologies Limited
Selenium, Tower-B
Plot No. 31 & 32, Financial District
Nanakramguda, Serilingampally
Hyderabad, Rangareddi 500 032
Telangana, India
Telephone: +91 40 6716 2222
E-mail: [email protected]
Website: www.kfintech.com
SAMHI Hotels Limited IPO FAQs
1. What is the allotment date of the SAMHI Hotels Limited IPO?
The allotment date of the SAMHI Hotels Limited IPO is 22 September 2023.
2. What is the price band of SAMHI Hotels Limited IPO?
The price band of SAMHI Hotels Limited IPO is INR 119 to 126 per share.
3. What is the size of the SAMHI Hotels Limited IPO?
SAMHI Hotels IPO aims to raise INR 1370.10 crores. The IPO has two segments- fresh issue worth INR 1200 crores and offer for sale worth INR 170.10 crores.
4. What is the listing date of the SAMHI Hotels Limited IPO?
The listing date of the SAMHI Hotels Limited IPO is 27th September 2023.
