SAMHI Hotels has received Securities and Exchange Board of India's go-ahead to raise an estimated Rs 1,800-2,000 crore through its initial public offering.
The company, which had filed IPO papers with the regulator in September, obtained "observations" from the markets watchdog on Nov. 29, according to information available with the SEBI.
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The regulator's observations are necessary for any company to launch public issue like initial public offer, follow-on public offer and rights issue.
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Going by the draft papers, SAMHI Hotels' IPO comprises a fresh issue of Rs 1,100 crore and an offer for sale of 1,91,45,624 equity shares.
According to market sources, the total issue size will be between Rs 1,800 -2,000 crore.
Net proceeds of the fresh issue will be utilised towards repayment or prepayment of certain indebtedness by the company and its subsidiaries. Besides, the money will be utilised for general corporate purposes.
Kotak Mahindra Capital Company, CLSA India, DSP Merrill Lynch and Goldman Sachs will manage the offer.
As on June 30, 2019, the current portfolio of SAMHI consists of 27 operating hotels across 12 cities.
For operating its hotels, the company has a long-standing relationship with three leading hotel operators -Marriott, IHG and Hyatt, as per the company overview in draft papers.
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