With both Nifty and Sensex breaching their all-time highs, Indian stock market investors are currently full of confidence. They are looking to cash in on every opportunity to make money. Amid such euphoria, several companies have announced the launch of their Initial Public Offerings (IPOs) in the second week of September 2023.
One of these IPOs – Samhi Hotels IPO – is hitting the D-street on Thursday, 14 September 2023. Here’s everything you need to know about the issuing company, including its strengths, weaknesses, financials, and growth prospects.
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Samhi Hotels Limited is a leading hotel ownership and asset management company. It was incorporated in 2010 with its head office in Gurugram, Haryana. As of 31 March 2023, the company operated 31 hotels with 4,801 keys across 14 Indian cities, including Delhi, Bengaluru, Hyderabad, Chennai, and Pune. It has two hotels under construction in Navi Mumbai and Kolkata with 461 keys.
The company works on the acquisition strategy to expand its business. It has a successful track record of buying and rehabilitating hotels across India. Some marquee hotels under Samhi Hotels Ltd. include Hyatt Regency (Pune), Courtyard by Marriott (Bengaluru), Four Points by Sheraton, Fairfield by Marriott, and the Holiday Express Inn.
The table below depicts the financials of Samhi Hotels Ltd. for the last three fiscal years. All details are as per the company’s Red Herring Prospectus (RHP) on the Securities and Exchange Board of India (SEBI) website dated 5 September 2023.
|Particulars||As of and for FY Ending March 31|
|Equity Share Capital||9||8||8|
|Revenue From Operations||739||323||170|
|Restated Loss for the Year||-339||-443||-478|
|Earnings Per Share (Diluted)||-44||-58||-63|
|Net Asset Value (In Rs/share)||-113||-92||-34|
*Amount in Crores
Below are a few takeaways from the financials of the company as seen in the above table:
Samhi Hotels IPO opens for public subscription on Thursday, 14 September and closes on Monday, 18 September 2023. It will combine a fresh issue worth Rs. 1,200 crores and an offer for sale worth Rs. 170 crores. As a retail investor, you can apply for at least 119 equity shares (one lot) and in multiples thereof in the price band of Rs. 119 to Rs. 126 per share.
Refer to the table below for more IPO details:
|IPO Date||14 Sept to 18 Sept 2023|
|Face Value||Rs. 1 per share|
|Price Band||Rs. 119 to Rs. 126 per share|
|Lot Size||119 shares|
|Total Issue Size||Rs. 1370 crores|
|Fresh Issue||Rs. 1200 crores|
|Offer for Sale||Rs. 170 crores|
|Issue Type||Book-built IPO|
|Listing At||NSE, BSE|
Considering the high debt value, consistent losses, and negative net worth, only investors with a high-risk appetite should proceed to invest in Samhi Hotels IPO. That being said, robust revenue growth reflects some positivity. You can open a free Demat account with Motilal Oswal and start investing in IPOs conveniently.