Samhi Hotels & Motisons Jewellers Receive SEBI Approval for IPO

Samhi Hotels and Motisons Jewellers, a retail jewelry company based in Jaipur, have received approval from the Securities and Exchange Board of India (SEBI) to raise capital through an initial public offering (IPO).

The two companies resubmitted their initial documents to SEBI in March of this year and received observation letters from SEBI between August 28 and August 31, according to an update from SEBI on Tuesday.

In the terminology used by SEBI, when it issues an observation, it signifies its approval for the commencement of the initial share offering.

According to the preliminary documents, Samhi Hotels has outlined its IPO plan, which includes raising Rs 1,000 crore through the issuance of new equity shares and offering 90 lakh equity shares held by current shareholders for sale.

The Offer For Sale (OFS) comprises the following share sales: Blue Chandra Pte Ltd plans to sell 42.36 lakh equity shares, Goldman Sachs Investments Holdings (Asia) Ltd intends to sell up to 24.78 lakh equity shares, GTI Capital Alpha Pvt Ltd plans to sell up to 15.47 lakh equity shares, and the International Finance Corporation aims to sell up to 7.39 lakh equity shares.

This represents a partial withdrawal by current shareholders in order to comply with listing regulations.

Previously, the company submitted its IPO documents to SEBI in September 2019 and received approval from the market regulator in November 2019 for the initial share offering, but the company chose not to proceed with the launch at that time.

The Gurugram-based firm intends to use the net proceeds from the new equity shares, totaling Rs 750 crore, to repay debt and for general corporate needs.

As of February 28, 2023, Samhi Hotels possesses a portfolio of 25 operational hotels, with a total of 3,839 rooms, strategically located in 12 major urban centers in India, including Bengaluru, Hyderabad, the National Capital Region (NCR), Pune, Chennai, and Ahmedabad.

By February 2023, Samhi Hotels holds the distinction of being the biggest owner of Fairfield by Marriott and Holiday Inn Express brands in India.

The company operates under extended management agreements with renowned global hotel operators such as Marriott, Hyatt, and IHG.

Regarding the Motisons Jewellers IPO, it entails the issuance of 3.34 crore new equity shares and does not include any Offer For Sale (OFS) component.