The initial public offering (IPO) of Samhi Hotels (SAMH.NS), a company that operates Marriott, Hyatt, and IHG hotels in India, garnered significant investor interest, oversubscribing by more than five times. The bids received for the IPO amounted to 41.96 billion rupees ($504 million), according to exchange data.
Investors submitted bids for a total of 333 million shares on the final day of bidding, surpassing the 62.5 million shares initially offered. Institutional investors demonstrated the highest level of interest in the IPO.
Samhi Hotels’ IPO, valued at 13.7 billion rupees, includes a fresh issue of shares worth up to 12 billion rupees and an offer-for-sale of up to 1.7 billion rupees from existing investors, including Goldman Sachs (GS.N). The company set a price band of 119 rupees to 126 rupees per share for the IPO and is expected to make its trading debut in the coming week.
Despite incurring losses, Samhi Hotels experienced significant growth in revenue from operations, exceeding 7.39 billion rupees in the fiscal year ending March 31. The net loss narrowed from 4.43 billion rupees in the previous year to 3.39 billion rupees.
Samhi, headquartered in Gurugram, was established in 2010 and manages a portfolio of 31 operating hotels across 14 cities. Marriott accounted for over 60% of its revenue in the last fiscal year, while Hyatt and InterContinental Hotels Group (IHG) each contributed slightly over 18%.
The company intends to utilize 9 billion rupees of the IPO proceeds to repay its outstanding debt, which amounted to 31.18 billion rupees as of the end of June.
