Samhi Hotels Limited is gearing up to embark on its IPO journey which will begin offering on September 14, 2023. As a prominent player in India’s hotel ownership and asset management sector, Samhi Hotels’ IPO has caught the attention of investors. This comprehensive article provides a detailed overview of Samhi Hotels IPO, including key dates, important company information, positive and negative aspects, or risk factors, and an extensive review to help investors make investment decisions. To do. or not.
Also read: RR Kabel IPO – How good is this IPO?
Samhi Hotels IPO Details
| IPO start date | September 14, 23 |
| IPO deadline | September 18, 23 |
| IPO listing date | September 27, 23 |
| Type of problem | Book Built Issue IPO |
| face value | 1 rupee per share |
| IPO price range | 119 to 126 rupees per share |
| lot size | 119 shares |
| Minimum order quantity | stock |
| Exhibition location | BSE and NSE |
| Total issue size | Rs. 1370.1 billion yen |
| Latest issue | Rs. 12 billion |
| OFS | Rs. 170.1 billion yen |
Samhi Hotels IPO Schedule
| IPO start date | September 14, 23 |
| The IPO will close in | September 18, 23 |
| Basis for allocation | September 22, 23 |
| Initiate refund | September 25, 23 |
| Credit of shares to Demat. | September 26, 23 |
| Listing date | September 27, 23 |
| Deadline time for UPI obligation confirmation | September 18, 23 |
About Samhi Hotels Limited
Founded in 2010, Samhi Hotels Limited specializes in branded hotel ownership and asset management, making a significant impact on the Indian hospitality industry. As of March 31, 2023, the company operates across 31 hotels across major consumption destinations in 14 cities including bustling cities like Bangalore, Hyderabad, National Capital Region (NCR), Pune, Chennai and Ahmedabad. With a diverse portfolio of 4,801 keys, it has solidified its presence.
Samhi Hotels also has two hotels planned for development in Kolkata and Navi Mumbai, with a total of 461 keys. The recent acquisition of Asiya Capital and his ACIC SPV further expands the company’s reach, adding his 962 keys to six operating hotels and land for a new hotel in Navi Mumbai, Maharashtra. Secured.
Samhi Hotels Limited Financials
The company’s financial highlights include:
| Fiscal year end/period end (amount in billions) | |||
| detail | FY21 | FY22 | 23rd year |
|---|---|---|---|
| assets | 2,488.00 | 2,386.58 | 2,263.00 |
| revenue | 179.25 | 333.10 | 761.42 |
| Profit after tax | -477.73 | -443.25 | -338.59 |
| net worth | -259.28 | -702.63 | -871.43 |
| reserves and surplus | -203.12 | -646.47 | -816.18 |
| Total loan amount | 2,424.40 | 2,597.69 | 2,787.54 |
subject of the problem
- IPO has both OFS and Fresh issuance.
- Samhi Hotel’s IPO includes an offer for sale (OFS), the proceeds of which will be allocated to selling shareholders and the new issue. The net proceeds from the new issuance will be allocated for the following purposes:
- Financing working capital requirements: Ensuring the company maintains sufficient liquidity for day-to-day operations.
- General corporate objectives: Meet a variety of business needs and explore avenues for growth.
Samhi Hotel IPO evaluation
The IPO price band for Samhi Hotels is set at Rs 119-126 per share. Since it has been in the red for the past three years, it is not possible to check the P/E ratio, and it is not possible to check whether the stock is undervalued or overvalued compared to its peers.
Samhi Hotels IPO Gray Market Premium (GMP)
There is no authentic source that can verify the Samhi Hotels IPO GMP, but as of today, some sources on the Chittorgarh IPO website are showing the GMP as very low at Rs.
Samhi Hotels IPO – Positive elements
- Diverse hotel portfolio: The company caters to a wide range of hotel operators, reducing reliance on a single brand.
- Solid revenue growth: Samhi Hotels has consistently shown revenue growth, reflecting its strong market position.
- Focus on innovation: The company’s expansion plans and strategic acquisitions demonstrate its forward-thinking approach.
Samhi Hotels IPO – Risk Factors
- Occurrence of loss: The company has been making losses for the past three years. Investors should always invest in profitable companies that offer the potential for stock price appreciation.
- Raw material procurement: Without long-term contracts with raw material suppliers, hotel operations may be affected.
- Hospitality industry sensitivity: The Company is sensitive to economic fluctuations affecting the hospitality industry, which may affect its profitability.
- Dependence on local market: A significant portion of our domestic business is concentrated in certain regions, creating risks in the event of adverse conditions.
- Debt level: High levels of debt may limit our ability to invest in growth strategies.
- competition: The hospitality industry has low barriers to entry, and competition from new entrants can impact market share.
Samhi Hotels IPO Review – Should you apply or not?
Samhi Hotel’s IPO presents both opportunities and challenges. Before deciding to invest, consider the following important points:
Strong Points:
- Diverse hotel portfolio.
- Consistent revenue growth.
- Strategic expansion efforts.
Cons
- A company in the red.
- It is not possible to confirm whether the issue price is cheap or expensive.
- Raw material procurement risk.
- Sensitivity to fluctuations in the hospitality industry.
- Regional market concentration.
- High working capital requirements.
- A competitive industry landscape.
Investors may skip such IPOs for now.
Suresh KP is the founder of Myinvestmentideas. He is a NISM Certified Investment Advisor and he is a NISM Certified Research Analyst. He has been analyzing financial markets for the past 20 years. He can be reached at suresh@myinvestmentideas.com.
