SAMHI Hotels is offering a fresh issue of equity shares aggregating up to Rs. 1200 crores, and an offer for sale (OFS) of equity shares aggregating up to Rs. 170.10 crores.
The combined total IPO Issue size is Rs. 1370.10 crores.
SAMHI Hotels Limited IPO opened on 14th September 2023. You can bid in the IPO till 18th September 2023.
As per the RHP, SAMHI does not have an identifiable promoter.
JM Financial and Kotak Mahindra Capital are the book-running lead managers of the IPO.
The article contains a detailed analysis of SAMHI Hotels Limited’s IPO that will help you make informed investment decisions. You can use net banking (ASBA) to invest in an IPO or you can invest through your broker like Zerodha. ASBA is quick, hassle-free, and can be completed in 5 minutes.
SAMHI Hotels Limited IPO Details
| Particulars | IPO Details |
| IPO Opening date | 14th September 2023 |
| IPO Closing date | 18th September 2023 |
| IPO Price | Rs. 119 to Rs. 126 per share |
| Lot size | 119 shares |
| Issue size | Rs. 1370.10 Cr |
| No. of fresh shares | 95,238,095 shares aggregating to Rs. 1200 crores |
| Offer for Sale | 13,500,000 shares aggregating to Rs. 170.10 cores |
| Listing on | BSE and NSE |
Find here other upcoming IPOs in 2023.
SAMHI Hotels Limited IPO Timetable
| Particulars | IPO Details |
| IPO Opening date | 14th September 2023 |
| IPO Closing date | 18th September 2023 |
| Basis of Allotment date | 22nd September 2023 |
| Credit of Share | 26th September 2023 |
| Listing date | 27th September 2023 |
SAMHI Hotels Limited IPO GMP
GMP data collected from various sources like reputed financial websites, news channels, stockbrokers and IPO blogs is under.
Remember – Grey Market Price (GMP) shows you an indicative price of SAMHI Hotels Limited upon listing. You should take precautions because GMP is not an official price and only an indicative value.
| Date | GMP |
| 14th September 2023 | Rs. 16 |
| 13th September 2023 | Rs. 35 |
| 12th September 2023 | Rs. 10 |
| 11th September 2023 | Rs. 10 |
Industry Overview
The hotel industry in India has over 360,000 keys including branded hotels, independently run hotels and aggregators. Of this, the current branded inventory market size as of March 2023 stands at approximately 180,000.
Over the last decade, the branded segment in India has recorded maximum growth in comparison to the other segments and accounts for 40% of the total inventory.
Across India, the top 10 hotel brands by operating inventory size manage over 130,000 keys which account for approximately 76% of the total branded inventory in India.
Of this, Marriott International operates the largest volume of branded inventory in the country with over 28,600 keys.
While traditionally, hotel-owning companies in India grew predominantly through greenfield developments, SAMHI Hotels acquired a large number of hotels to rapidly scale up their operations, becoming one of the fastest-growing hotels owning entities in India by number of keys added per year to their portfolio in comparison to listed hospitality companies in India, as of March 31, 2023.
They have strategically invested in hotels that are well-connected to key transport facilities and have well-established social and residential infrastructure.
The graph above indicates the inventory owned by top hotel owners in India in terms of room count, who operate their inventory under various brands, as of March 31, 2023.
When compared to both categories, SAMHI Hotels is the third largest hotel-owning entity in India in terms of the total number of owned/leased keys, as of March 31, 2023.
SAMHI Hotels Limited Overview
SAMHI is a prominent branded hotel ownership and asset management platform in India. The company has the third-largest inventory of operational keys (owned and leased) in India as of March 31, 2023.
It has a portfolio of 3,839 keys across 25 operating hotels in 12 of India’s key urban consumption centers like
- Bengaluru (Karnataka),
- Hyderabad (Telangana),
- National Capital Region (“NCR”),
- Pune (Maharashtra),
- Chennai (Tamil Nadu)
- Ahmedabad (Gujarat)
They currently categorize our hotel portfolio into three distinct hotel segments based on brand classification –
- Upper Upscale and Upscale,
- Upper Mid-scale and
- Mid-scale
For FY- 2023, their Domestic Customer Volume (i.e., percentage of nights occupied by customers who are Indian citizens as compared to total nights occupied) for Upper Upscale and Upscale, Upper Mid-scale and Mid-scale segments was 69.71%, 75.08% and 95.79%, respectively.
SAMHI Hotels Limited Issue Size
You can bid for both –
- Fresh Issue of equity shares aggregation up to Rs. 1200 Crs.
- The OFS portion of the IPO aggregate amount of Rs. 170.10 Crs
Total Issue Size of SAMHI Hotels IPO is = Rs. 1370.10 crores.
You can check the IPO bidding process here.
SAMHI Hotels Limited Subscription Data
Below you can find the day-wise subscription data of the SAMHI Hotels Limited IPO.
Subscription data shows the number of times the IPO is subscribed overall and also under each category.
| Date | QIB | NII | Retail | Total |
| Day – 1 14th September 2023 | 0.00 | 0.02 | 0.34 | 0.07 |
| Day – 2 15th September 2023 | 0.00 | 0.07 | 0.58 | 0.13 |
| Day – 3 18th September 2023 | 8.82 | 1.22 | 1.11 | 5.33 |
SAMHI Hotels Limited Promoter Details
SAMHI Hotels Ltd does not have an identifiable promoter as per the Red Herring prospectus.
SAMHI Hotels Limited Financials
Key financials of SAMHI Hotels Limited Ltd. for the last 3 completed financial years FY23, FY22, and FY21 are under.
| Details | FY- 2023 | FY- 2022 | FY- 2021 |
| Total Assets | Rs. 2263.00 cr | Rs. 2386.57 cr | Rs. 2488.00 cr |
| Total Income | Rs. 761.42 cr | Rs. 333.10 cr | Rs. 179.25 cr |
| Profit/ Loss After Tax | Rs. – 338.58 cr | Rs. -443.25 cr | Rs. -477.72 cr |
| Net Worth | Rs. -871.43 cr | Rs. -702.62 cr | Rs. -259.27 cr |
| Other Equity (including retained earnings) | Rs. -816.71 cr | Rs. -646.46 cr | Rs. -203.11 cr |
| Total Borrowing | Rs. 2787.54 cr | Rs. 2597.68 cr | Rs. 2424.40 cr |
De-growth in net worth of SAMHI Hotels Limited happened in the last 3 years from Rs. – 259 cr in FY 2021 to Rs. -871 cr in 2023. In the past three years, SAMHI Hotels Limited’s long-term borrowings also increased from Rs. 2424 cr to Rs. 2787 Cr.
The total income of SAMHI Hotels Limited has grown more than 4 times in the last three years from Rs. 179 cr to Rs. 761 cr. But the PAT improved marginally from Rs. -477 cr to Rs. -338 cr during the last 3 years.
Note – Overall the financial performance does not seem good. The company’s PAT, Networth, and Reserves, all three are in negative.
Additionally, SAMHI has Rs. 2700 cr of borrowings to repay. Clearly a red flag.
SAMHI Hotels Limited Peer Comparison
The below table shows a comparison between SAMHI Hotels Limited and other listed companies that are engaged in a similar business.
| Company | EPS | P/E | RoNW | NAV |
| SAMHI Hotels Limited | -43.93 | – | NA % | -113.07 |
| Chalet Hotels | 8.94 | 61.64 | 11.96% | 74.77 |
| Lemon Tree | 1.45 | 75.26 | 12.48% | 14.22 |
| Indian Hotels | 7.06 | 59.63 | 12.24% | 60.53 |
| EIH | 5.03 | 49.55 | 9.49% | 55.48 |
SAMHI Hotels Limited Objects of the Issue
SAMHI Hotels Limited proposes to utilize the Net Proceeds from the Issue for
1. Repayment of borrowings availed the company and its subsidiaries
SAMHI Hotels Ltd and its subsidiaries’ aggregate outstanding borrowings is Rs. 2812.46 cr as of 30th June 2023.
SAMHI Hotels Limited intends to utilize an estimated amount of Rs. 900 crores from the Net IPO Proceeds towards the repayment of its borrowings.
2. For General corporate purposes
The rest of the IPO amount will be spent on general corporate purposes subject to such utilization not exceeding 25% of the Net Proceeds, in compliance with the SEBI ICDR Regulations.
Should You Invest in SAMHI Hotels Limited IPO?
SAMHI has a portfolio of 3,839 keys across 25 operating hotels in 12 cities.
Their USP lies in the ability to acquire dislocated hotels and demonstrated track record to re-rate hotel performance through renovation and/or rebranding. Top hotel operators like Marriott, Hyatt and IHG manage their chain of hotels.
Due to the impact of COVID, the recent financial performance of SAMHI hotels is a concern.
De-growth in the net worth of SAMHI Hotels Limited happened in the last 3 years from Rs. – 259 cr in FY 2021 to Rs. -871 cr in 2023. In the past three years, SAMHI Hotels Limited’s long-term borrowings also increased from Rs. 2424 cr to Rs. 2787 Cr.
The total income of SAMHI Hotels Limited has grown more than 4 times in the last three years from Rs. 179 cr to Rs. 761 cr. But the PAT improved marginally from Rs. -477 cr to Rs. -338 cr during the last 3 years.
Overall the financial performance does not seem encouraging. The company’s PAT, Networth, and Reserves, all three are in negative. Additionally, SAMHI has Rs. 2700 cr of borrowings to repay.
Key risks to consider are –
- Incurring losses and negative net worth in the past 3 financial years
- Audit qualification relating to the maintenance of proper books of account
- Business is subject to seasonal and cyclical variations
- 60% of revenues come from third-party hotel operator – Marriott
- 85% of the revenues are generated from hotels located in 6 cities
- The hospitality industry in India is intensely competitive
Here you can check the allotment status 3-4 days after the SAMHI Hotels’s IPO is complete.
