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Samhi Hotels, Motisons Jewellers get Sebi nod to float IPO

Sep 5, 2023, 16:23 IST
PTI
Source: Pixabay
New Delhi, Samhi Hotels and Jaipur-based retail jewellery company Motisons Jewellers have received capital markets regulator Sebi's go-ahead to raise funds through an initial public offering. The two firms had re-filed their preliminary papers with Sebi in March this year, and obtained its observation letters during August 28-31, an update with Sebi showed on Tuesday.
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In Sebi's parlance, its observation implies its go-ahead to launch the initial share sale.

As per the draft papers, Samhi Hotels proposed an IPO comprising a fresh issue of equity shares worth Rs 1,000 crore and an Offer For Sale (OFS) of 90 lakh equity shares by existing shareholders.

The OFS consists of 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 International Finance Corporation.

It is a partial exit by the existing shareholders to meet the listing regulations.

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Earlier, the company filed its IPO papers with Sebi in September 2019 and had obtained the markets regulator's approval in November 2019, to float the initial share sale but the company did not go ahead with the launch.

The Gurguram-based company will utilise net proceeds of the fresh issue to the tune of Rs 750 crore towards payment of debt and for general corporate purposes.

Samhi has a portfolio of 3,839-key rooms spread across 25 operating hotels in 12 of India's major urban consumer hubs, including Bengaluru, Hyderabad, National Capital Region (NCR), Pune, Chennai, and Ahmedabad, as of February 28, 2023.

As of February 2023, it is the largest owner of Fairfield by Marriott and Holiday Inn Express brands in India. It operates under long-term management contracts with global hotel operators like Marriott, Hyatt, and IHG.

The IPO of Jaipur-based jewellery retail player Motisons Jewellers comprises fresh issuance of 3.34 crore equity shares and there is no OFS component.

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The company will utilise the net proceeds from the issue towards repayment of existing borrowings availed by them from scheduled commercial banks, funding the working capital requirements and general corporate purposes.

The jewellery maker had filed preliminary IPO papers with the capital markets watchdog in September 2022. However, the regulator returned the draft papers in December.

Shares of both companies will be listed on the stock exchanges -- NSE and BSE.
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