Indian owner of Marriott-operated hotels files for IPO

Existing shareholders are also seeking to sell up to 19.1 mn shares in the offering, with Blue Chandra Pte Ltd and Goldman Sachs Investments Holdings (Asia) Ltd looking to offload about 15 mn shares in total, according to its prospectus here. The company said it would use part of the proceeds from the fresh issue of shares to cut its debt. It was reported in May that SAMHI Hotels was considering raising up to Rs 20 bn in an IPO in H2 of 2019.

SAMHI Hotels’ filing comes days after the government slashed corporate taxes and the goods and services tax on hotel rates in an effort to boost private investment and revive a sagging economy. This also follows Chalet Hotels Ltd’s $230 mn share sale in January that received solid investor response.

SAMHI Hotels may also consider raising up to Rs 4 bn in a rights issue to existing shareholders or via a private placement, it said in the filing.