The shares of Suba Hotels made a strong market debut on October 7, listing at Rs 154.20 apiece on the NSE Emerge platform. This marks a premium of 38.92 percent over the IPO price of Rs 111 apiece.
Grey market estimates:
The listing premium is significantly higher than the grey market estimates. Ahead of listing, the unlisted shares of the company were trading with a little over 9 percent grey market premium (GMP) over the IPO price.
About Suba Hotels IPO:
The company had moved to the capital markets to raise Rs 75.47 crore through a fresh issue of 67.99 lakh shares at a price band of Rs 105-111 apiece. Investors could bid for a minimum of 1,200 shares, requiring an investment of Rs 1,33,200 at the upper price band, and in multiples thereafter.
The SME IPO saw strong investor interest during its three days of public bidding, being subscribed more than 15 times between September 29 and October 1. The company plans to utilise the IPO proceeds for hotel upgradation and general corporate purposes.
Founded in 1994, Suba Hotels currently has more than 129 properties in over 72 cities across India. "The journey began in 1994 with Suba Guest House, a modest 10 room establishment managed by Mr. Abubaker Mehta. This small guest house, later renamed Hotel Suba Palace, laid the foundation for what would become a symbol of elegance and superior hospitality," the company's website says.
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