SAMHI Hotels Limited IPO - Valuation, Date, Review, & GMP

SAMHI Hotels Limited - Complete Overview

Established in 2010, SAMHI Hotels Limited is a prominent player in India's branded hotel ownership and asset management sector. 

The company has curated a portfolio consisting of 4,801 keys distributed among 31 operational hotels situated in 14 of India's major urban hubs. These cities include Bengaluru (Karnataka), Hyderabad (Telangana), the National Capital Region (“NCR”), Pune (Maharashtra), Chennai (Tamil Nadu), and Ahmedabad (Gujarat) as of March 31, 2023.

SAMHI classifies its hotel portfolio into three distinct segments based on brand classification: Upper Upscale and Upscale, Upper Mid-scale, and Mid-scale.

On March 30, 2023, the company finalized a binding share subscription and purchase agreement with Asiya Capital and the ACIC SPVs (the “ACIC SSPA”) to acquire a total of 962 keys across six operational hotels and a plot of land designated for hotel development in Navi Mumbai, Maharashtra. This acquisition, known as the "ACIC Acquisition," encompasses the "ACIC Portfolio."

Additionally, SAMHI is actively developing a 350-key hotel under the Upper Mid-scale segment in MIDC, Navi Mumbai, and a 111-key Holiday Inn Express in Rajarhat, Kolkata.

SAMHI's hotels operate under the banners of well-known hotel operators such as Courtyard by Marriott, Sheraton, Hyatt Regency, Hyatt Place, Fairfield by Marriott, Four Points by Sheraton, and Holiday Inn Express. This affiliation grants its hotels access to the strong operating processes, sales and distribution experience, larger clientele and loyalty programs of such hotel operators.

 

What does the company do?

SAMHI Hotels Limited is a prominent player in India's branded hotel ownership and asset management sector.

 

IPO Overview

The Samhi Hotels IPO date is scheduled from September 14th to September 18th, 2023, with an anticipated listing date of September 27th, 2023.

This IPO is categorized as a Book Built Issue IPO. The allocation of shares is as follows: 75% for institutional investors, 15% for non-institutional investors, and 10% for retail investors.

For the latest information on the upcoming IPO, please refer to the Finowings IPO section to stay well-informed.

 

SAMHI Hotels Limited IPO timetable (Tentative)

EVENTS	DATE
IPO Opening Date	14 September 2023
IPO Closing Date	18 September 2023
IPO Allotment Date	22 September 2023
Refund initiation	25 September 2023
IPO Listing Date	27 September 2023

 

SAMHI Hotels Limited IPO Details

IPO Opening & Closing Date	14 September to 18 September 2023
Face Value	Rs.1 Per Share
Issue Price	Rs.119 to Rs.126 per share
Lot Size	119 Shares
Price of 1 Lot	Rs. 14,994
Issue Size	[.] Shares (aggregating up to Rs. 1,370.10 Cr)
Offer for Sale	13,500,000 Shares of Rs. 1 (aggregating up to Rs. [.] Cr)
Fresh Issue	[.] Shares (aggregating up to Rs. 1,200.00 Cr)
Listing at	BSE, SME
Issue Type	Book Built Issue IPO
Registrar	Kfin Technologies Ltd.

 

SAMHI Hotels Limited IPO Lot Details 

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lot
Minimum Lot Investment (HNI)	14 Lot
Maximum Lot Investment (HNI)	67 Lot

 

SAMHI Hotels Limited IPO Reservation

Institutional share Portion	75%
Non-institutional share Portion	15%
Retail share Portion	10%

 

Company Financial

Amount in Crores

Period	FY - 21	FY - 22	FY - 23
Total Assets	2488.00	2386.58	2263.00
Total Revenue	179.25	333.10	761.42
PAT	-477.73	-443.25	-338.59
Net Worth	-259.28	-702.63	-871.43
Reserve & Surplus	-203.12	-646.47	-816.18
Total Borrowings	2424.40	2597.69	2787.54

 

Revenue contribution from Marriott, Hyatt and IHG

(Amount in Million)

Particulars	FY 23	FY 22	FY 21
Marriott	4,491.23	2,056.81	1073.29
Hyatt	1,354.77	552.31	273.50
IHG	1,358.49	524.29	288.16

 

City-Wise contribution to Total Income

(Amount in Million)

City, State	FY 23	FY 22	FY 21
Bengaluru, Karnataka	1,989.35	604.60	254.62
Pune, Maharashtra	1,331.51	531.74	273.45
Hyderabad, Telangana	1,461.66	627.03	324.24
Gurugram, Haryana	620.40	276.11	148.05
Ahmedabad, Gujarat	601.87	339.05	150.19
Chennai, TamilNadu	518.71	308.28	237.33
Total	6,523.50	2,686.81	1,387.87

 

Objective of the Issue 

The company intends to use the funds for the following purposes:

• Clearing, partially or entirely, certain borrowed amounts along with accrued interest, either through repayment, prepayment, or redemption. 
• Addressing general corporate requirements.

 

Promoters and Management of SAMHI Hotels Limited

According to the SAMHI Hotels DRHP, the company does not have a discernible promoter as defined by SEBI ICDR Regulations and the Companies Act 2013.

 

Peer Comparison

The following are the listed peers of the company

Company Name	Revenue From Operations	EPS (Diluted)	P/E
SAMHI Hotels Limited	7,385.70	(43.93)	-
Pro Forma Condensed Financial Information (SAMHI Hotels Limited and ACIC SPVs (Pro Forma)	9,328.09	(31.95)	-
Chalet Hotels	11,284.67	8.94	61.64
Lemon Tree	8,749.90	1.45	75.26
Indian Hotel	58,099.10	7.06	59.63
EIH	20,188.07	5.03	49.55

 

IPO's Valuations

To calculate the IPO valuation, we can utilize the company's provided information. The offering price per share falls within the range of Rs. 119 to Rs. 126, while the EPS stands at Rs. 43.93. When we compute these figures, we arrive at a PE ratio for the company of (2.86). 

 

Dividend Policy

The company has a history of not generating profits and has not declared dividends in the past. The potential payment of dividends in the future will likewise rely on the financial performance of the company.

 

IPO's Strengths

• The company's capability to acquire hotels in distressed situations and its proven track record of improving hotel performance through renovations and rebranding.
• The increased scale and diversity of the company's portfolio are bolstered by favourable trends in the sector.
• The company's history of efficient hotel management.
• Proficiency in leveraging analytics tools to enhance operational efficiencies and long-term performance.
• A robust governance structure and an experienced management team.

 

IPO Weaknesses 

• The company has previously failed to meet specific conditions outlined in certain financing agreements.
• Recent financial records show losses and negative net worth.
• The company's indebtedness and the terms of its financing arrangements could constrain its ability to expand the business.
• The company's operations are susceptible to seasonal and cyclical variations that may lead to fluctuations in financial results.
• Compliance with competition laws in India may impact the company.
• The Company and its subsidiaries are engaged in various legal proceedings.
• The company has provided security interests over particular assets.
• The company is required to maintain or renew its statutory and regulatory licenses, permits, and approvals for continued business operations.
• Non-compliance with certain provisions of the Companies Act, 2013, has occurred in the past, with one compounding application pending.
• The company is subject to extensive government regulations concerning safety, health, environmental, real estate, excise, labour laws, and specific reporting requirements prescribed by the Reserve Bank of India.

 

IPO GMP Today

Latest GMP of SAMHI Hotels IPO is Rs. 10. 

 

Conclusion 

The company has been consistently experiencing a negative net worth and the primary purpose of this IPO is to settle its outstanding debts, with the potential consequence of legal actions by the creditors if the debt remains unpaid. Furthermore, even with the debt repayment, the company's prospects for profitability appear challenging. As a result, potential investors should consider this offering after conducting a thorough and detailed analysis.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP

 

 

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