Capital markets regulator SEBI (Securities and Exchange Board of India) has given the green light to two companies, Samhi Hotels and Motisons Jewellers, to raise funds through initial public offerings (IPOs). SEBI’s approval implies that the companies can proceed with their plans to go public.
Samhi Hotels, a hospitality company, has proposed an IPO comprising a fresh issue of equity shares valued at ₹1,000 crore and an Offer for Sale (OFS) of 90 lakh equity shares by existing shareholders. The OFS includes the sale of 42.36 lakh equity shares by Blue Chandra Pte Ltd, up to 24.78 lakh equity shares by Goldman Sachs Investments Holdings (Asia) Ltd, up to 15.47 lakh equity shares by GTI Capital Alpha Pvt Ltd, and up to 7.39 lakh equity shares by the International Finance Corporation. This OFS represents a partial exit by existing shareholders to comply with listing regulations.
The proceeds from the fresh issue, amounting to ₹750 crore, will be utilized by Samhi Hotels for debt repayment and general corporate purposes. As of February 28, 2023, the company owns a portfolio of 3,839 key rooms across 25 operating hotels in 12 major urban consumer hubs in India, including Bengaluru, Hyderabad, the National Capital Region (NCR), Pune, Chennai, and Ahmedabad. Samhi Hotels is the largest owner of Fairfield by Marriott and Holiday Inn Express brands in India and operates under long-term management contracts with global hotel operators such as Marriott, Hyatt, and IHG.
On the other hand, Jaipur-based jewelry retail company Motisons Jewellers plans to issue 3.34 crore fresh equity shares in its IPO, with no Offer for Sale component. The net proceeds from the IPO will be utilized for repaying existing borrowings from scheduled commercial banks, funding working capital requirements, and general corporate purposes.
While Samhi Hotels had previously filed IPO papers with SEBI in September 2019 and obtained regulatory approval in November 2019, the IPO was not launched at the time. Motisons Jewellers had initially filed preliminary IPO papers with SEBI in September 2022, but the regulator returned the draft papers in December.
Both companies intend to list their shares on the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) after completing their respective IPOs, joining the ranks of publicly-traded entities in the Indian capital markets.
