Should You Hold, Sell, or Buy After Samhi Hotels’ 6% Listing Gains on the Stock Market Debut?
Samhi Hotels Ltd. made its stock market debut on Friday, September 22, when its shares listed on the BSE and NSE with gains of 6%. In comparison to the issue price of Rs 126 per share, the company’s shares opened on the NSE for Rs 134.5 per share. However, after the listing, the shares decreased in value and are presently trading on the NSE at Rs 129.5 per share as of 10:40 a.m.
Samhi Hotels’ shares were offered at a premium on the BSE as well, for Rs 130.55. At 10.41 am, its BSE price was Rs 4.70 per unit, which is 3.73 percent more expensive than the initial offer price.
6.7 percent more than its IPO price of 126 rupees, Samhi Hotels floated for Rs 134.5 per share, according to Shivani Nyati, head of wealth at Swastika Investmart Ltd. On the one hand, the business is in the red and has had dismal financial results for the last three years.
On the other side, she said, the firm is improving at reducing losses, and the sales multiple is 3.7X, which is lower than the industry standard. Investors should close out their positions and record profits, and those who still wish to retain the stock should keep a stop loss at the listing price.
The IPO’s subscription period ran from September 14 to September 18. A new issuance of up to Rs 1,200 crore and an offer to sell up to 13,500,000 equity shares were both included in the IPO.
The offer’s price range was Rs 119–126 per share.
Samhi Hotels, situated in Gurugram, had reported collecting Rs 616.54 crore from anchor investors.
In a pre-IPO placement, outside investor Blue Chandra, together with Nuvama Crossover Opportunities Fund and TIMF Holdings, sold 10.32 million shares, or 8.4% of its holdings, to famous investor Madhusudan Kela’s wife Madhuri Kela for a total of Rs 130 crore.
Samhi buys and constructs major hotels, then renovates, rebrands, and rerates the establishment before managing it.
The IPO’s managers were JM Financial and Kotak Mahindra Capital Company.
