Indian hotel operator Samhi Hotels’ IPO oversubscribed five times

BENGALURU, Sept 18 (Reuters) – Samhi Hotels’ initial public offering (IPO) (SAMH.NS)which operates Marriott, Hyatt and IHG hotels in India, was more than five times oversubscribed, generating bids worth Rs 41.96 billion ($504 million), stock exchange data showed on Monday.

Investors bid for 333 million shares through the final day of the auction, 5.33 times more than the 62.5 million shares on offer, with institutional investors showing the most interest, according to the data. presented.

Samhi Hotels’ initial public offering worth Rs 13,700 crore comprises a fresh issue of shares worth up to Rs 12,000 crore and an offer for sale of up to Rs 1,700 crore from existing investors, including Goldman Sachs. (GS.N).

The loss-making company has set a price range of Rs 119 to Rs 126 per share for the initial public offering, according to a newspaper advertisement. It is expected to make its commercial debut next week.

Samhi Hotels’ operating income more than doubled to Rs 7.39 billion in the year ended March 31, helping its net loss narrow to Rs 3.39 billion from Rs 4.43 billion a year earlier. .

Gurugram-based Samhi was incorporated in 2010 and has a portfolio of 31 hotels operational across 14 cities. Marriott (SEA) accounted for more than 60% of its revenue last year, while Hyatt (HN) and InterContinental Hotel Group (IHG) (IHG.L) They contributed a little more than 18% each.

Samhi plans to use Rs 9,000 crore of the proceeds to pay down debt, according to its IPO prospectus. Its consolidated outstanding debt was Rs 31.18 billion at the end of June.

JM Financial and Kotak Mahindra Capital are the lead managers of the IPO. (1 dollar = 83.3067 Indian rupees)

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