MUMBAI, 25 SEPTEMBER, 2019 (GPN):

SAMHI Hotels Limited, a leading hotel owner and asset manager across India, has filed its Draft Red Herring Prospectus with the Securities and Exchange Board Of India (SEBI) to file for its proposed IPO.

As per the DRHP, the fresh issue will be of Rs. 1,100 crore and the Offer for Sale (OFS) will be of 19,145,624 equity shares. The net proceeds of the fresh issue is towards repayment / prepayment of certain indebtedness by the company and its subsidiaries besides general corporate purposes.

The BRLMs to the issue will be Kotak Mahindra Capital Company, CLSA India, DSP Merrill Lynch and Goldman Sachs.

While the total issue size will depend upon the price discovery, market Sources have estimated it to be anywhere between 1800-2000 crores.

As on June 30, 2019, the current portfolio of SAMHI consisted of 27 operating hotels comprising of 4048 keys across 12 cities for Marriott, IHG and Hyatt brand’s, which is in line with its multi brand business model.

Within 8 years of its operations, not only it has managed to become the countries 3^rd largest hotel asset owner but also the fastest growing hotel asset company as per no., of keys. It currently owns the largest no., of Marriott and IHG operated hotels in India.

The IPO is backed by marquee investors like Goldman Sachs, IFC, GTI and Equity International who have a great reputation in the global markets.

The Indian hotel industry is largely unorganized with lower brand penetration. India’s lower share of organized keys and brand penetration makes a case for institutional ownership. The fragmented nature of the industry will continue to offer consolidation opportunities and the company continues to have a acquisition led strategy where it identifies, turnarounds and ramps up existing assets. ENDS

Find Here DRHP Link for your reference: