Gurugram-based SAMHI Hotels has refiled papers with market regulator Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO). The company had initially filed draft red herring prospectus (DRHP) with the market regulator in September 2019.
According to the DRHP, the company's offer consists of fresh issue of shares worth ₹1,000 crore and an offer for sale (OFS) of 9 million equity shares by the selling shareholders. The issue has a face value of Re 1 per equity share for the proposed share sale.
The offer for sale (OFS) includes up to 7.39 lakh equity shares from the International Finance Corporation, up to 4.23 million equity shares from Blue Chandra Pte Ltd, up to 2.48 million equity shares from Goldman Sachs Investments Holdings (Asia) Ltd, and up to 1.55 million equity shares from GTI Capital Alpha Pvt Ltd. The current owners are partially exiting the company to comply with listing requirements.
The offer is being made through the book-building process, in which no more than 15% of the offer may be allocated to non-institutional bidders and no more than 10% of the offer may be allocated to retail individual bidders. At least 75% of the offer will be proportionately allocated to qualified institutional buyers.
The company, Blue Chandra Pte Ltd, and Goldman Sachs Investments Holdings (Asia) Ltd may contemplate a private placement of equity shares totaling up to ₹200 crore after discussing with the lead bankers to the issue. The size of the new issue will be reduced if it works out.
The company will use the net proceeds of the fresh issue to repay, prepay, or redeem some of the borrowings taken out by the company and its subsidiaries in full or in part, as well as for general corporate purposes.
SAMHI Hotels is a prominent branded hotel ownership and asset management platform in India, with the third largest inventory of operational keys (owned and leased) in the country as of February 28, 2023, according to a JLL report mentioned in the DRHP.
JM Financial Ltd and Kotak Mahindra Capital Company Ltd are the book-running lead managers for the issue, and KFin Technologies Ltd is the registrar.
