Samhi Hotels trims fresh issue size of IPO
1 min read . Updated: 03 Apr 2023, 09:39 PM IST
PremiumThe Gurugram-based company had first filed its papers with the Securities and Exchange Board of India (Sebi) for an IPO in September 2019 to raise ₹1,800-2,000 crore.
NEW DELHI : Goldman Sachs-backed Samhi Hotels, the owner of some Marriott brand of hotels in India, has refiled its draft prospectus for an initial public offering.
The Gurugram-based company had first filed its papers with the Securities and Exchange Board of India (Sebi) for an IPO in September 2019 to raise ₹1,800-2,000 crore. At the time, Samhi said it intended to raise ₹1,100 crore in fresh capital and an offer for sale (OFS) of 19.14 million shares by existing shareholders. This time, however, the size of the fresh capital-raising has been cut to ₹1,000 crore while the OFS will comprise nine million shares, as per the draft papers.
Existing shareholders Goldman Sachs Investments Holdings (Asia) Ltd, Blue Chandra Pte Ltd, GTI Capital Alpha Pvt. Ltd and International Finance Corp. (IFC) will seek to pare their holdings through the IPO to meet public listing norms.
According to the draft papers, Blue Chandra and Goldman Sachs may consider a private placement of shares to raise up to ₹200 crore ahead of the IPO, which could further lower the fresh issue size.
Samhi plans to use ₹750 crore from the fresh issue to either repay, prepay or redeem borrowings and for general corporate purposes. JM Financial Ltd and Kotak Mahindra Capital Co. Ltd are the book running managers to the issue.
Samhi was founded by Ashish Jakhanwala and Manav Thadani. The company has the third largest inventory of operational keys (owned and leased) in India as of February, the draft prospectus cited a JLL report as saying.
Samhi has a portfolio of 3,839 keys in more than 25 operating hotels in 12 cities like Bengaluru, Hyderabad, Delhi NCR, Pune, Chennai, and Ahmedabad. In addition to Marriott, it also runs Hyatt Regency in Pune; and Holiday Inn Express chains across Ahmedabad, Bengaluru, Pune, Gurgaon, Hyderabad, Nashik, and Chennai.
On 30 March, Samhi entered into a binding share subscription and purchase deal 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, it will enter 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 centres.
For FY22, Samhi reported a 90.3% jump in revenue to ₹322.74 crore from ₹169.58 crore during the covid-hit year of FY21.