Bulk deal: Morgan Stanley offloads stake in SAMHI Hotels on listing day

Leading investment bank Morgan Stanley has offloaded stake in Gurugram-based hotel operator SAMHI Hotels, which debuted on the exchanges on Friday.

SAMHI Hotels listed at a mild premium of 8% on the NSE over its issue price. However, the stock rallied and closed at Rs 146 per share on the NSE, which is 16% higher than the IPO price of Rs 126.

According to bulk deals data available with the exchanges, Morgan Stanley, through its various funds, sold a combined shares of 64.6 lakh.

It is unclear how much stake in the company these shares amounted to as the shareholding pattern was not yet available with the exchanges.

Post the listing, analysts recommended investors to book profits, mainly because of poor financials in the last three financial years.

For the year ending March, the company’s revenue from operations more than doubled to Rs 738 crore. However, it posted a loss of Rs 338.5 crore in the said period.

SAMHI Hotels is a prominent hotel ownership and asset management platform in India, with the third largest inventory of operational keys (owned and leased) in the country as of February, 2023.The company acquires or builds primary hotels and thereafter renovates, rebrands the properties under its wings. All of its hotels are in the upper upscale and upscale, upper mid-scale and mid-scale hotel segments, typically operating under long-term management contracts with established and well recognized global hotel operators.

Some of the marquee names in its portfolio are Hyatt Regency, Pune; Courtyard by Marriott, Bengaluru; Four Points by Sheraton Vizag; Fairfield by Marriott among others.

“This paints a bleak picture for the business compared to its listed peers such as Chalet Hotels and Indian Hotels. We advise investors who have received allotment to book profits on the listing day and evaluate the financial performance for the next few quarters for an investment decision,” said Anushi Vakharia, Research Analyst, StoxBox.

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