The shares of the prominent small-cap company fell up to 4 percent after a foreign institutional investor offloaded 87,21,414 equity shares in the company via a block deal
Price movement
With a market capitalization of Rs 3,983.92 crore, the shares of Samhi Hotels Ltd were trading at Rs 180.10 per share, increasing around 2.12 percent as compared to the previous closing price of Rs 184.00 apiece.
Reason for Fall
According to NSE, Blue Chandra Pte, a foreign institutional investor, has offloaded its entire 87,21,414 equity shares, which is equivalent to a 3.94 percent stake in the company, at an average price of Rs 174.3 per share, the transaction valued at Rs 152.01 crore.
Moreover, the 3.94 percent stake was acquired at the same price by prominent investors, including LGT Select Funds, BofA Securities Europe SA, CBJ as Trustee for SMBCTB Emerging Markets Impact MF, Citigroup, TT International, Steinberg India, and Tata Mutual Fund, reflecting strong institutional interest.
Recent events
Recently, the company announced a strategic partnership with GIC to launch a platform for upscale hotel assets in India. GIC will invest Rs 752 crore for a 35 percent stake in three subsidiaries—Courtyard & Fairfield by Marriott Bengaluru ORR, Hyatt Regency Pune, and Trinity Hotel Bengaluru—valued at a combined enterprise value of Rs 2,200 crore.
Additionally, out of the Rs 752 crore investment by GIC, Rs 603 crore will be used upfront to reduce debt across Samhi’s portfolio and cover minor deal expenses. The remaining Rs 149 crore will be allocated over the next two years to partially fund capex for the dual-branded Westin/Tribute hotel in Bengaluru Whitefield.
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Market and Business Update
Strong office market expansion and record 77 million passenger movements drove RevPAR growth. Bangalore and Hyderabad see rising office space demand and air traffic, boosting future prospects. The company plans to double its upper upscale and upscale hotel portfolio from 1,000 to over 2,000 rooms.
Ongoing expansions include
The company’s expansions include 54 new rooms at Sheraton Hyderabad, 22 at Hyatt Regency Pune, and 330 through conversions in Pune and Jaipur. Major additions include 530 rooms at W Hotel Hyderabad and Westin Tribute Bangalore, alongside renovations at Holiday Inn Express Greater Noida.
Company Profile
SAMHI Hotels Limited is an India-based firm that offers a hotel ownership and asset management platform. The Company’s hotels fall under the Upper Upscale and Upscale, Upper Mid-scale, and Mid-scale segments. It has a portfolio of over 31 functioning hotels with 4,801 keys and a broad geographic presence in 14 locations across India.
Written by Abhishek Singh
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