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Ahmedabad-headquartered Suba Hotels secured over INR 21 crore from anchor investors ahead of its initial public offering that opened for subscription earlier this week. The hospitality chain, operating in the mid-market segment with 88 hotels, has set a price band of INR 105-111 per share. The IPO is entirely a fresh issue of equity shares, expected to generate INR 75.47 crore at the upper end. Funds raised will be directed towards hotel upgrades, last-mile funding, and corporate purposes.
Suba Hotels, based in Ahmedabad, attracted more than INR 21 crore from anchor investors before opening its initial public offering for public subscription earlier this week. According to the company's statement, over 19.17 lakh shares were allotted to anchor investors at INR 111 per share. Advertisement
The IPO, valued at INR 75.47 crore, opened earlier this week and will remain available for subscription until later this week. The issue comprises only fresh equity shares, totalling up to 67.99 lakh, each with a face value of INR 10. Suba Hotels has fixed the price band at INR 105-111 per share, which would allow the company to raise INR 75.47 crore at the upper limit. The lot size has been set at 1,200 equity shares per application.
Funds raised through the IPO will be used to finance capital expenditure, upgrade existing hotel premises, support last-mile project funding, and address general corporate needs. Chairman and Managing Director Mansur Mehta explained that, with an asset-light model, international brand partnerships, and expansion into Tier 2 and Tier 3 cities, the group is well-placed for sustainable growth. He added that the IPO proceeds would help strengthen the company's balance sheet and accelerate expansion plans.
Founded in October 1997, Suba Hotels operates within the domestic mid-market hospitality sector and currently runs 88 hotels. For FY25, the company reported revenue of INR 79.24 crore and a profit after tax of INR 15.15 crore. Following the public offering, the shares will be listed on the NSE's SME platform. Unistone Capital is acting as the sole book-running lead manager, while Bigshare Services serves as the registrar.
Suba Hotels' IPO has attracted significant investor attention, supported by strong anchor backing and a clear growth strategy. With its focus on asset-light expansion, strengthening global alliances, and tapping into emerging markets across Tier 2 and Tier 3 cities, the hospitality chain appears positioned for steady progress. The capital raised will enable the company to enhance infrastructure and support its long-term operational and financial objectives.
Source - PTI
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