SAMHI Hotels gets Sebi's go ahead for ₹1,800-2,000-crore IPO

Net proceeds of the fresh issue will be utilised towards repayment or prepayment of certain indebtedness by the company and its subsidiaries.

Sebi, SAMHI, IPO, Initial public offer, IPO papers, Equity shares

Securities and Exchange Board of India (Sebi) has given a go-ahead to SAMHI Hotels to raise an estimated ₹1,800-2,000 crore through its initial public offering (IPO). Sebi, said to be the markets watchdog provided the ‘observations’ on November 29 to SAMHI Hotels who had filed IPO papers with them in September, as per the information available with Sebi. The regulator's observations are necessary for any company to launch public issue like initial public offer, follow-on public offer and rights issue.


Going by the draft papers, SAMHI Hotels' IPO comprises a fresh issue of ₹1,100 crore and an offer for sale (OFS) of 1,91,45,624 equity shares. According to market sources, the total issue size will be between ₹1,800 -2,000 crore. Net proceeds of the fresh issue will be utilised towards repayment or prepayment of certain indebtedness by the company and its subsidiaries. Besides, the money will be utilised for general corporate purposes.


Kotak Mahindra Capital Company, CLSA India, DSP Merrill Lynch and Goldman Sachs will manage the offer. As on June 30, 2019, the current portfolio of SAMHI consists of 27 operating hotels across 12 cities. For operating its hotels, the company has a long-standing relationship with three leading hotel operators --Marriott, IHG and Hyatt, as per the company overview in draft papers. They have a diverse geographic presence in 12 cities across India, including Delhi, Bengaluru, Hyderabad, Chennai and Pune. SAMHI has 2 hotels under development with a total of 223 keys in Kolkata and Mumbai.