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SAMHI Hotels gains 14% on stock market debut; Zaggle Prepaid slips 3.5%

Samhi Hotels raised Rs 1,200 crore by issuing fresh shares in the IPO


Illustration: Binay Sinha

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Shares of Samhi Hotels gained 14 per cent during their stock market debut on Friday. The stock ended at Rs 143.6, up Rs 17.6 over the issue price of Rs 126. The stock hit a high of Rs 146 and a low of Rs 127 on the BSE.

At the last close, the company was valued at Rs 3,130 crore. Samhi Hotels' initial public offering (IPO), which closed on Monday, had garnered a little over five times subscription. Set up in 2010, Samhi Hotels is a branded hotel ownership and asset management platform, with a portfolio of 4,801 keys across 31 operating hotels. The company raised Rs 1,200 crore by issuing fresh shares in the IPO.

Samhi Hotels will use the IPO proceeds to pare its debt. "The Indian travel and tourism industry is slated to grow at a healthy pace over the next few years, driven by the benefits of rapid urbanisation, expansion of the office market, increasing domestic travel, and initiatives from the government.

Additionally, the industry is in the supply growth stabilisation phase, which is likely to benefit companies like Samhi Hotels through its inherently large scale of keys and ability to expand its inventory compared to other small players in the market," said a note by Stoxbox.

Zaggle Prepaid slips on debut

Shares of Zaggle Prepaid Ocean Services finished below their issue price during their trading debut on Friday. Its shares ended at Rs 158.3, down Rs 5.7, or 3.5 per cent, over its issue price of Rs 164.

The stock hit a high of Rs 176 and a low of Rs 156. Zaggle Prepaid is only the fourth IPO this year to end with losses on day one. The poor listing comes despite a decent response to the company's Rs 563-crore IPO, which saw nearly 12 times more demand than shares on offer.

Zaggle Prepaid is a fintech firm that offers products and services to manage corporate business expenses through automated workflows. The company issued fresh shares worth Rs 392 crore in the IPO, which it plans to use for customer acquisition, retention and towards the development of technology and products. At the last close, Zaggle Prepaid was valued at Rs 1,933 crore.

Signature Global subscribed 11.88x 
The initial public offering (IPO) of Sign­ature Global (India) was subs­cribed 11.88 times on the final day of subs­cr­iption on Friday, helped by enc­our­aging participation from insti­tu­tional investors. The public issue rece­ived bids for 1,33,605,074 shares agai­nst 11,243,196 shares on offer, according to NSE. The portion for non-ins­titu­tional investors was subscribed 13.54 times while the Qualified Institu­tional Buyers part received 12.71 times subs­cr­iption. The category for Retail Indiv­id­ual Inve­s­tors was subscribed 6.82 times. 

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First Published: Sep 22 2023 | 4:35 PM IST

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