The move comes after cut in corporate taxes and GST on hotel rates
The move comes after cut in corporate taxes and GST on hotel rates

SAMHI Hotels files for Rs 2,000 crore IPO

ANI | Updated: Sep 25, 2019 18:08 IST

Mumbai (Maharashtra) [India], Sep 25 (ANI): The Gurugram-based SAMHI Hotels has filed its draft red herring prospectus with market regulator Securities and Exchange Board of India (SEBI) to launch initial public offering (IPO).
The filing comes less than a week after the government slashed corporate taxes and Goods and Services Tax (GST) on hotel rates in an effort to boost private investments and revive a sagging economy.
SAMHI's public issue comprises a fresh issue of Rs 1,100 crore and an offer for sale (OFS) of 1.91 crore equity shares by selling shareholders, as per the draft papers.
It is expected to raise Rs 1,800 crore to 2,000 crore through the public issue. The company will utilise net proceeds of the fresh issue towards repayment and prepayment of certain indebtedness basides payment of accrued interest on the IFC compulsory convertible debentures.
SAMHI's investors include Goldman Sachs, World Bank arm International Finance Corporation, GTI Capital and Equity International. Investment bankers Kotak Mahindra Capital Company, CLSA India, DSP Merrill Lynch and Goldman Sachs are managing the initial share sale of SAMHI.
The company specialises in development, acquisition and ownership of branded hotels like Marriott International, Sheraton Hotels and Resorts, and Hyatt Hotels Corporation. As on June 30, SAMHI's portfolio consisted of 27 operating hotels comprising 4,048 keys across 12 cities.
For the financial year ending March 31, SAMHI reported a revenue of Rs 470.7 crore as against Rs 392.3 crore in the previous fiscal. In fiscal 2019, the company reported a loss of Rs 302.9 crore compared to a loss of Rs 203 crore a year ago. (ANI)