Suba Hotels IPO: A New Opportunity for Indian Investors
Ahmedabad-based Suba Hotels has raised more than Rs 21 crore from anchor investors ahead of the launch of its initial public offering for public subscription, a statement said on Sunday. The company allocated a little over 19.17 lakh shares to the anchor investors at a price of Rs 111 per share, Suba Hotels said in the statement.
About Suba Hotels IPO
The Rs 75.47-crore initial public offering will hit the capital markets on September 29 and conclude on October 1. The lot size for an application is 1,200 equity shares, it added. The IPO is entirely a fresh issue of up to 67.99 lakh equity shares with a face value of Rs 10 each. The company has fixed a price band at Rs 105-111 per share, and will fetch Rs 75.47 crore at the upper end of the price band.
Objectives of the IPO
Proceeds from the fresh issue will be used for funding capital expenditure requirements towards upgradation and last-mile funding of hotel premises and general corporate purposes. This will enable the company to strengthen its balance sheet and accelerate its expansion plans.
‘With our asset-light model, global brand partnerships, and expansion into Tier 2 and Tier 3 cities, we are uniquely positioned for sustainable growth. The IPO will help us strengthen our balance sheet and accelerate our expansion plans,’ Mansur Mehta, Chairman and MD of Suba Hotels Ltd, said.
Company Profile
Established in October 1997, Suba Hotels is a domestic hotel chain in the mid-market sector with 88 operational hotels. The company reported a revenue of Rs 79.24 crore and profit after tax of Rs 15.15 crore in FY25. Suba Hotels has a strong presence in the Indian hospitality industry, with a focus on providing high-quality services to its customers.
Investment Rationale
The Indian hospitality industry is expected to grow significantly in the coming years, driven by increasing demand from domestic and international tourists. Suba Hotels is well-positioned to benefit from this growth, with its strong brand presence, global partnerships, and expansion plans. The company’s asset-light model will enable it to maintain a low debt-equity ratio, reducing the risk for investors.
IPO Details
The company’s shares will be listed on the NSE’s SME platform. Unistone Capital is the sole book-running lead manager, while Bigshare Services is the registrar for the IPO. The IPO is expected to attract significant attention from investors, given the company’s strong financials and growth prospects.
Key Highlights of the IPO
- IPO size: Rs 75.47 crore
- Price band: Rs 105-111 per share
- Lot size: 1,200 equity shares
- IPO dates: September 29 – October 1
- Listing: NSE SME platform
Investors can apply for the IPO through various channels, including online platforms and offline applications. The company has fixed a price band of Rs 105-111 per share, which is expected to attract significant interest from investors.
Conclusion
In conclusion, the Suba Hotels IPO offers a new opportunity for Indian investors to participate in the growth of the Indian hospitality industry. With its strong financials, growth prospects, and experienced management team, Suba Hotels is well-positioned to deliver long-term value to its investors. Investors can apply for the IPO through various channels, and the company’s shares are expected to list on the NSE SME platform soon after the IPO closes.
