India: Goldman Sachs-backed SAMHI Hotels Plans To Raise $285.7m Via IPO

Goldman Sachs-backed SAMHI Hotels Ltd, a hotel owner and asset manager across India, on Wednesday filed the draft papers for its initial public offering (IPO) which could see the company raise ₹1,800-2,000 crore.

According to the draft red herring prospectus (DRHP) filed by the company, SAMHI intends to raise ₹1,100 crore in fresh capital through the IPO. In addition, existing shareholders of the company will sell 19.14 million shares through an offer for sale.

Along with the offer for sale, the total IPO size is expected to be worth around ₹1,800-2,000 crore, a person aware of the company’s plans said on condition of anonymity.

SAMHI’s investors include Goldman Sachs, World Bank arm International Finance Corp, GTI Capital and Equity International.

As on 30 June, SAMHI’s portfolio consisted of 27 operating hotels, comprising 4,048 keys, across 12 cities for Marriott, IHG and Hyatt brands.

For the financial year ending 31 March, SAMHI reported a revenue of ₹470.7 crore as against a revenue of ₹392.3 crore in the previous fiscal. In fiscal 2019, the company reported a loss of ₹302.9 crore compared with a loss of ₹203 crore a year ago.

In July 2018, Bharat Hotels, which runs five-star properties under The LaLiT brand, filed its draft prospectus with capital markets regulator to garner ₹1,200 crore through its initial share-sale.

Also in 2018, Warburg Pincus funded hotel chain Lemon Tree Hotels Ltd went public in a ₹1,040 crore IPO.

This article was first published on livemint.com.