Equity International, Asiya Capital, Goldman-backed Samhi Hotels get Sebi nod to float IPO

Samhi Hotels and Motisons Jewellers IPOs get green signal from Sebi

Samhi Hotels, backed by Equity International, Asiya Capital and Goldman Sachs, has received approval from the market watchdog Sebi to go public to raise around Rs 1,400 crore.

The company refiled the draft papers in March for raising funds through an initial public offering. It had filed the IPO papers for the first time in September 2019 to raise around Rs 2,000 crore. But the issue fell through because of the Covid outbreak early in 2020.

As per the latest prospectus, the IPO will comprise fresh issues worth Rs 1,000 crore and an offer-for-sale (OFS) of 90 lakh shares by investors.

Blue Chandra, the largest shareholder, along with Goldman Sachs Investments Holdings (Asia), GTI Capital Alpha, and International Finance Corporation, will be sellers in the OFS.

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Privately held Samhi Hotels has received the observation letter from the Sebi on August 31. In Sebi parlance, the observation issued over the draft offer document means the company can launch its proposed initial share sale.

The prominent branded hotel ownership and asset management platform will use fresh issue proceeds mainly for repaying debts amounting to Rs 750 crore, and the remaining for general corporate purposes, while the OFS money will go to selling shareholders.

Samhi Hotels has built a portfolio of 3,839 keys across 25 operating hotels in 12 major urban consumption centres, including Bengaluru, Hyderabad, National Capital Region, Pune, Chennai and Ahmedabad, as of February 28, 2023.

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It acquires or builds primarily business hotels, and takes steps to further upgrade properties and engage with established branded hotel operators to allow the hotels to be appropriately positioned within the market. Subsequently, it deploys in-house and proprietary asset management tools and capabilities to further enhance the ongoing financial and operational performance of the property.

JM Financial, and Kotak Mahindra Capital Company are the merchant bankers to the issue.

Motisons Jewellers IPO

The market regulator on August 28 gave the green light to a proposed public issue of Motisons Jewellers, which also filed draft papers in March. The IPO comprises only fresh issue of 3.34 crore equity shares.

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This means the entire issue proceeds, excluding IPO expenses, will be utilised by the company for repaying its debts, working capital requirements and general corporate purposes.

The Rajasthan-based jewellery retail company with more than two decades in the industry operates four showrooms under the Motisons brand. It is 100 percent owned by the Chhabra family.

Holani Consultants is the book running lead manager to the issue.