Suba Hotels Secures Rs 21.29 Crore from Anchor Investors Ahead of SME IPO
Suba Hotels has raised Rs 21.29 crore from anchor investors for its SME IPO, allotting 19.17 lakh equity shares at Rs 111 per share. Notable investors include Mukul Agrawal, Sunil Singhania, and Ashish Kacholia, each investing Rs 3.33 crore. The IPO price band is set at Rs 105-Rs 111 per share. Suba Hotels operates 88 hotels across 50+ cities in partnership with Choice Hotels. The company reported a profit after tax of Rs 15.15 crore, with a 31.80% ROE and 35.50% ROCE.
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Suba Hotels, a prominent player in the hospitality sector, has successfully raised Rs 21.29 crore from anchor investors in preparation for its Small and Medium Enterprise (SME) Initial Public Offering (IPO). The company, which operates 88 hotels across more than 50 cities in partnership with Choice Hotels, has attracted notable investors in this pre-IPO funding round.
Anchor Investment Details
The company allotted 19.17 lakh equity shares to anchor investors at Rs 111 per share, which marks the upper end of the IPO price band. Three well-known investors have made significant contributions to this anchor round:
- Mukul Agrawal
- Sunil Singhania
- Ashish Kacholia
Each of these investors received 3 lakh shares worth Rs 3.33 crore, collectively accounting for 46.92% of the total anchor quota.
Other Key Investors
In addition to the high-profile individual investors, several institutional investors have also participated in the anchor round:
- Saint Capital Fund invested Rs 2.40 crore
- Capri Global Capital contributed Rs 1.81 crore
IPO Details
Suba Hotels has set the price band for its SME IPO at Rs 105-Rs 111 per share. The shares are currently showing no grey market premium, indicating a neutral market sentiment towards the upcoming offering.
Company Performance
Suba Hotels has demonstrated strong financial performance, reporting:
| Metric | Value |
|---|---|
| Profit After Tax | Rs 15.15 crore |
| Return on Equity (ROE) | 31.80% |
| Return on Capital Employed (ROCE) | 35.50% |
These figures suggest a robust financial position and efficient use of capital by the company.
Company Overview
Suba Hotels operates a network of 88 hotels spread across more than 50 cities. The company has established a partnership with Choice Hotels, a well-known name in the hospitality industry, which likely contributes to its extensive reach and operational capabilities.
The successful anchor investment round, featuring participation from renowned individual and institutional investors, may be seen as a vote of confidence in Suba Hotels' business model and growth prospects. As the company prepares for its SME IPO, investors and market watchers will be keenly observing how this hospitality player performs in the public market.
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