Suba Hotels Raises Over Rs 21 Crore From Anchor Investors; IPO To Open On Sept 29
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.
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.
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.
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.
'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.
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.
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.
