Blue Chandra Sells Stake in Samhi Hotels Ahead of IPO, Priced at Rs 126 per Share

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Blue Chandra Pte Ltd, a Singapore-based investment firm, has reduced its stake in Samhi Hotels ahead of the company’s initial public offering (IPO). The stake reduction was part of a private placement of 1,03,17,460 equity shares in Samhi Hotels for Rs 130 crore. The shares were sold at a price of Rs 126 per share.

Prior to the stake reduction, Blue Chandra was the largest shareholder in Samhi Hotels with a 30.65% stake. As a result of the sale, its stake has reduced to 22.25%, making it the second largest shareholder after ACIC Mauritius, which holds a 30.51% stake.

The private placement was conducted to three investors: Madhuri Madhusudan Kela, wife of ace investor Madhusudan Kela; Nuvama Crossover Opportunities Fund; and TIMF Holdings.

The IPO of Samhi Hotels is scheduled to open for subscription from September 14-18. The company is looking to raise Rs 1,370.1 crore through the IPO, which comprises a fresh issuance of shares worth Rs 1,200 crore and an offer for sale (OFS) of 1.35 crore shares by Blue Chandra, Goldman Sachs Investments Holdings (Asia), and GTI Capital Alpha.

The proceeds from the IPO will be used to repay debts amounting to Rs 900 crore and the remaining for general corporate purposes.

Samhi Hotels is a hotel owner and asset manager that acquires or builds primarily business hotels. It then upgrades the properties and engages with established branded hotel operators to position the hotels in the market. The company has a portfolio of 3,839 keys across 25 operating hotels in 12 key urban consumption centres in India.

JM Financial and Kotak Mahindra Capital Company are the merchant bankers on the issue.

In addition to the above, I would like to add the following points:

  • The private placement of shares by Blue Chandra was conducted at a premium of 3.1% to the floor price of the IPO. This suggests that investors are optimistic about the prospects of Samhi Hotels and are willing to pay a premium for the shares.
  • The IPO of Samhi Hotels is expected to be one of the largest IPOs in India this year. The company is well-positioned to benefit from the growth of the Indian hospitality industry.
  • The IPO is also likely to be well-received by retail investors, as Samhi Hotels is a well-known brand in the Indian hospitality industry.

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