New Delhi: SAMHI Hotels, backed by Goldman Sachs, has refiled its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO).
The company is looking to raise ₹1,000 crore via fresh issue of shares and an offer for sale of up to 9 million equity shares, with key investors looking to dilute stake to meet listing norms. In September 2019, SAMHI Hotels had filed for IPO, looking to raise ₹1,800 crore to ₹2,000 crore.
The OFS will see up to 4.23 million equity shares being offered by Blue Chandra Pte. Ltd., up to 2.48 million equity shares by Goldman Sachs Investments Holdings (Asia) Ltd, up to 1.55 million equity shares by GTI Capital Alpha Pvt Ltd., and up to 7.39 lakh equity shares by International Finance Corp (IFC).
The issue has a face value of ₹1 per equity share for the proposed share sale. The offer is being made through the book-building process, where at least 75% of the offer will be allotted to qualified institutional buyers, not more than 15% of the offer shall be available for allocation to non-institutional bidders and not more than 10% of the offer shall be available for allocation to retail investors.
JM Financial Ltd and Kotak Mahindra Capital Company Ltd are the book-running managers for the issue.
The company, Blue Chandra Pte. Ltd., and Goldman Sachs Investments Holdings (Asia) may consider a private placement of equity shares up to ₹200 crore. If that is completed, then the fresh issue size will be reduced.
The net proceeds will be used for repayment of borrowings of the firm and its subsidiaries, payment of interest and general corporate purposes.
The company, which owns hotels run by Marriott International and others, is supposed to be the third largest inventory of operational keys (owned and leased) in the country as of February 2023, according to a JLL report and as cited in the DRHP.
It acquires or builds hotels and renovates, rebrands, and re-rates properties to run them. In 12 years, it has built a portfolio of 3,839 keys spread over 25 operating hotels in 12 cities like Bangalore, Hyderabad, National Capital Region (“NCR”), Pune, Chennai, and Ahmedabad.
SAMHI was founded by Ashish Jakhanwala and Manav Thadani.
On 30 March 2023, SAMHI entered into a binding share subscription and purchase agreement with Asiya Capital and ACIC SPVs to acquire 962 rooms across six hotels and land to build a 350-room hotel in MIDC, Navi Mumbai.
With this acquisition, the company said, it will foray into Jaipur and add rooms in existing markets like Hyderabad, Pune, Chennai, and Ahmedabad. In addition, it plans to add two hotels and 617 keys in existing cities as well as two new cities, Kolkata and Navi Mumbai, increasing its presence to 14 key urban consumption centers.
It also has hotels like Hyatt Regency in Pune; and Holiday Inn Express chains across Ahmedabad, Bengaluru, Pune, Gurgaon, Hyderabad, Nashik, and Chennai.
For FY22, SAMHI reported a 90.32% year-on-year rise in revenue to ₹322.74 crore.
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