SAMHI Hotels IPO lists at 6.75% premium, then rallies smartly

SAMHI Hotels Ltd had a very modest listing on 22nd September 2023, listing at a moderate premium of 6.75%, but rallied very smartly from the listing price. The closing price on 22nd September 2023 was not just above the IPO price, but also decisively above the listing price of the day. In a sense the stock opened moderately higher but even rallied sharply post listing during the day and closed at a meaningful premium to the listing price. What is more interesting is the fact that the strong listing day performance by SAMHI Hotels Ltd came on 22nd September 2023, when the stock markets had cracked for the third day in succession. On Friday, the Nifty fell by 68 points and the Sensex by 221 points. In the last 3 days, the Nifty has fallen by over 550 points and the Sensex by over 1,500 points. It is in this backdrop that the listing day performance of SAMHI Hotels on 22nd September 2023 was more than gratifying in terms of its resilience.

It must be mentioned here the SAMHI Hotels did not have the benefit of any great subscription levels during the IPO. The stock had seen very modest subscription in the IPO. The subscription was 5.57X  overall and QIB subscription at 9.18X. Hence the listing was expected to be modest at best and negative at worst. However, while the listing was modest, the performance strength got reinforced during the trading day. However, it must be said that the sharp rally in the market during the day led to the stock also picking up momentum after listing at a modest premium. Here is the SAMHI Hotels Ltd listing story on 22nd September 2023.

IPO subscription and pricing details

The IPO price was fixed at the upper end of the band at ₹126 which was anyways along expected lines considering the moderate 5.57X overall subscription and the 9.18X QIB subscription in the IPO. In addition, the retail portion had got subscribed just 1.17X in the IPO while the HNI / NII portion also got a paltry subscription of just 1.29X. The price band for the IPO was ₹119 to ₹126. On 22nd September 2023, the stock of SAMHI Hotels Ltd listed on the NSE at a price of ₹134.50, a modest premium of just 6.75% over the IPO issue price of ₹126. On the BSE also, the stock listed at ₹130.55, a very modest premium of just 3.61% over the IPO issue price of ₹126 per share.

How the stock of SAMHI Hotels Ltd closed on both exchanges

On the NSE, SAMHI Hotels Ltd closed on 22nd September 2023 at a price of ₹146. That is a first day closing premium of 15.87% on the issue price of ₹126 and also a premium of 8.55% on the listing price of ₹134.50. In fact, the listing price turned out to be the approximate mid-point of the day while the closing price was very close to the high price of the day. On the BSE, the stock closed at ₹143.55. That represents a first day closing premium of 13.93% above the IPO issue price and also a premium of 9.96% above the listing price on the BSE. On both the exchanges, the stock listed modestly above the IPO issue price but managed to close Day-1 after rallying much higher. In fact, the opening price turned out to be the midpoint of the day between the low price and the high price while the closing price was very close to the high price of the day. Here it must be remembered that the fairly gratifying performance by the stock on listing day has come despite a sharp fall in the Nifty and the Sensex for 3 days in a row. That is what makes the listing performance on 22nd September 2023, all the more important to the stock.

Price volume story on the NSE

The table below captures the opening price discovery in the pre-open period on the NSE.

Data Source: NSE

Let us look at how the stock traversed on the National Stock Exchange (NSE) on 22nd September 2023. On Day-1 of listing, SAMHI Hotels Ltd touched a high of ₹146.60 on the NSE and a low of ₹127.25. The premium to the IPO issue price sustained through the day, and even the low point of the day was above the IPO issue price of the company. Mainboard IPOs also do not have any upper circuit of 5%, unlike SME IPOs. If you look at the range of prices, the opening price or listing price was like the midpoint of a volatile day but the stock closed very close to the high point of the day. All this happened amidst weak markets with the Nifty losing over 60 points on 22nd September 2023 and losing over 500 points in the last 3 days. On Day-1 of listing, the SAMHI Hotels Ltd stock traded a total of 467.36 lakh shares on NSE amounting to value of ₹634.95 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers. The stock closed the day with pending buy orders of 1,44,269 shares on the NSE.

Price volume story on the BSE

Let us look at how the stock traversed on the Bombay Stock Exchange (NSE) on 22nd September 2023. On Day-1 of listing, SAMHI Hotels Ltd touched a high of ₹146.45 on the BSE and a low of ₹127.45. The premium to the IPO issue price sustained through the day, and even the low point of the day was above the IPO issue price of the company. Mainboard IPOs also do not have any upper circuit of 5%, unlike SME IPOs. If you look at the range of prices, the opening price or listing price was like the midpoint of a volatile day but the stock closed very close to the high point of the day. All this happened amidst weak markets with the Sensex losing over 220 points on 22nd September 2023 and losing over 1,550 points in the last 3 days. On Day-1 of listing, the SAMHI Hotels Ltd stock traded a total of 19.42 lakh shares on BSE amounting to value of ₹25.99 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers. The stock closed the day with pending buy orders on the BSE.

Market capitalization, free float, and delivery volumes

While the volumes on the BSE were not as much as on the NSE, the trend was once again the same. The order book through the day showed a lot of strength and that almost sustained till the close of the trading session on the first day of trading. The sharp fall in the Nifty and the Sensex over the last 3 days, really did not deter the performance of the stock of SAMHI Hotels Ltd on listing day. That makes it a rather attractive stock after the strong listing on Friday. On the NSE, out of the total 467.36 lakh shares traded during the first day of trading, the deliverable quantity represented 264.56 lakh shares or a deliverable percentage of 65.88% on the NSE, which is well above the routine listing day median. That shows a lot of delivery action in the counter. Even on the BSE, out of the total 25.99 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 10.32 lakh shares representing total deliverable percentage of 53.16%, well below the delivery action on the NSE. Unlike the SME segment stocks, which are on T2T on the day of listing, the mainboard IPOs permit intraday trading even on the day of listing.

At the close of Day-1 of listing, SAMHI Hotels Ltd had a market capitalization of ₹3,129.90 crore with free-float market cap of ₹970.27 crore. SAMHI Hotels Ltd has issued capital of 21.80 crore shares with a par value of ₹1 per share.