The public issue of Samhi Hotels, a prominent branded hotel ownership and asset management platform in India, has not seen a great support from investors yet. Participants have bought 77.91 lakh shares, which is 12 percent of the offer size of 6.25 crore shares, on September 15, the second day of bidding.
Retail investors remained at the top in terms of support to the offer as they have subscribed for 58 percent shares of their reserved portion which is 10 percent of IPO size, while the portion set aside for high networth individuals (non-institutional investors), which is 15 percent, was subscribed 7 percent.
Qualified institutional buyers (QIB) have bought just 0.005 percent shares of the allotted quota, which is 75 percent of the offer size. Of the QIB, 60 percent of the portion has already been fully booked by anchor investors on September 12, a day before the issue opening.
Anchor investors, including Government of Singapore, Monetary Authority of Singapore, CLSA, HSBC Global, Citigroup, Societe Generale SBI Mutual Fund, ICICI Prudential, Aditya Birla Sun Life Trustee, and Elara India Opportunities Fund, have bought 4.89 crore shares worth Rs 616.54 crore at upper price band.
The price band for the offer, which was opened on September 14, is Rs 119-126 per share.
Click Here To Read Moneycontrol's Exclusive Note on Samhi Hotels IPO
Marquee investors Equity International, ACIC Mauritius and Goldman Sachs-backed company intends to mobilise Rs 1,370.1 crore via initial public offering at the upper price band, which comprises a fresh issuance of shares worth Rs 1,200 crore shares and an offer-for-sale (OFS) of Rs 170.1 crore by three selling shareholders.
Equity International Fund V-owned Blue Chandra, Goldman Sachs Investments Holdings, and GTI Capital Alpha are the selling shareholders in the OFS.
Also read: Samhi Hotels IPO: 10 things to know before subscribing to the Rs 1370 cr issue
The repayment of debts worth Rs 900 crore will be paid via net fresh issue proceeds, while the remaining fresh issue money will be utilised for general corporate purposes.
Samhi Hotels, which acquires or builds primarily business hotels, and then takes steps to further upgrade properties and engages with established branded hotel operators to allow the hotels to be appropriately positioned within the market, has a portfolio of 4,801 keys across 31 operating hotels in key urban consumption centers in India.
Its shares were available at around 8 percent premium over the upper price band, in the grey market, analysts said on anonymity. The grey market is an unofficial platform wherein IPO shares can be bought and sold till the listing.
The maiden public issue of Samhi Hotels was subscribed 7 percent on debut, September 14.
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