Samhi Hotels, one of India’s leading hotel developers and operators, has re-filed its initial public offering (IPO) papers with the Securities and Exchange Board of India (SEBI). The company is looking to raise Rs 1,000 crore through a fresh issue of shares.
This is not the first time that Samhi Hotels has filed for an IPO. In 2018, the company had filed papers with SEBI, seeking to raise Rs 1,800 crore through a combination of fresh issue of shares and sale of shares by existing shareholders. However, the IPO was later shelved due to poor market conditions.
Samhi Hotels was founded in 2011 by Ashish Jakhanwala, Manav Thadani, and Steve Rushmore. The company has a portfolio of 29 hotels, including international brands such as Marriott, Hyatt, and AccorHotels, as well as its own brand, Samhi.
The hospitality industry in India has been hit hard by the COVID-19 pandemic, with hotels and resorts facing a sharp decline in occupancy rates and revenue. However, as the country slowly recovers from the pandemic, the industry is expected to bounce back. Samhi Hotels’ IPO comes at a time when the hospitality sector is showing signs of recovery, with domestic travel picking up pace.
Samhi Hotels plans to use the proceeds from the IPO to retire its existing debt, which stood at Rs 2,092.4 crore as of March 31, 2020. The company will also use the funds to acquire and develop new hotels and to provide a partial exit to some of its existing shareholders.
The re-filing of the IPO papers by Samhi Hotels is a positive development for the Indian capital markets, which have seen a surge in IPO activity in recent months. In 2020, despite the pandemic, India saw 14 IPOs, which raised a total of Rs 25,960 crore. In the first quarter of 2021, India has already seen 15 IPOs, which have raised a total of Rs 24,960 crore.
The resurgence of IPOs in India is driven by various factors, including the government’s push for disinvestment and privatization, the growing interest of retail investors in the stock market, and the availability of cheap capital. The surge in IPO activity is expected to continue in the coming months, with several large companies lining up to go public.
The re-filing of IPO papers by Samhi Hotels is a positive sign for the Indian capital markets, and reflects the growing confidence of investors in the hospitality sector. As the industry recovers from the pandemic, Samhi Hotels is well-positioned to capitalize on the growing demand for quality hotel accommodation. The success of Samhi Hotels’ IPO will be closely watched by investors and industry experts, as it will provide a gauge of the appetite for new issuances in the hospitality sector.
Moreover, Samhi Hotels’ IPO is expected to provide a boost to the Indian hospitality industry, which has been struggling to recover from the impact of the pandemic. The sector, which contributes significantly to India’s GDP, has been hit hard by the pandemic, with hotels and resorts facing a sharp decline in occupancy rates and revenue.
However, the Indian government has taken several steps to support the industry, including providing financial aid and tax relief to hoteliers. The government has also launched the ‘Dekho Apna Desh’ campaign, aimed at promoting domestic tourism and boosting the hospitality sector.
The launch of Samhi Hotels’ IPO at this time is significant, as the hospitality industry is showing signs of recovery. Domestic travel has been on the rise, with many Indians opting for staycations and weekend getaways. This trend is expected to continue as people look for safe and comfortable travel options within the country.
Samhi Hotels has a strong track record of developing and operating high-quality hotels in India. The company has a portfolio of 29 hotels, including properties under international brands such as Marriott, Hyatt, and AccorHotels. The company’s own brand, Samhi, is also gaining popularity among Indian travelers.
The hospitality industry in India is expected to grow at a CAGR of 9% between 2018 and 2022, driven by rising disposable incomes, increasing domestic and international tourist arrivals, and government initiatives to promote tourism. Samhi Hotels is well-positioned to capitalize on this growth, with a portfolio of well-located, high-quality hotels in key tourist and business destinations across India.
In conclusion, Samhi Hotels’ re-filing of IPO papers is a positive sign for the Indian hospitality industry and the country’s capital markets. The IPO is expected to provide a boost to the industry, which has been struggling to recover from the impact of the pandemic. Samhi Hotels has a strong track record of developing and operating high-quality hotels in India, and is well-positioned to capitalize on the growth opportunities in the industry. The success of Samhi Hotels’ IPO will be closely watched by investors and industry experts, and is expected to pave the way for more issuances in the hospitality sector.
