Suba Hotels raises ₹21 cr from anchor investors; IPO to open on Sep 29

Ahmedabad-headquartered Suba Hotels has secured over ₹21 crore from anchor investors ahead of its initial public offering (IPO), the company announced on Sunday.

 

According to the statement, the company allotted just over 1.91 million shares, worth ₹21 crore, to anchor investors at an issue price of ₹111 per share.

 

The anchor book saw participation from 12 investors, with the largest allocations of 300,000 shares each going to Sanshi Fund-I, Bengal Finance and Investment Private Limited, and Bharat Venture Opportunities Fund. Each of these investors contributed ₹3.33 crore, accounting for 15.64 per cent of the anchor portion.

 

Other notable investors include Saint Capital Fund, which received 216,000 shares, and Capri Global Capital Limited, allotted 163,000 shares. The remaining allocations were distributed among funds such as Next Orbit Ventures Fund, Jalan Chemicals Industries, J4S Venture Fund-I, Avora SME Fund 1, Arnesta Global Opportunities Fund, CP Capital Limited, and Rajasthan Global Securities, each securing around 91,200 shares.

 

Founded in October 1997, Suba Hotels is a domestic mid-market hotel chain operating 88 hotels. The company recorded revenue of ₹79.24 crore and net profit of ₹15.15 crore in financial year 2024-25 (FY25).

 

The IPO, valued at ₹75.47 crore, will open for bidding on September 29 and close on October 1. Each application will require a minimum lot size of 1,200 equity shares.

 

The offering comprises entirely a fresh issue of up to 6.79 million equity shares, each with a face value of ₹10. The price band is set between ₹105 and ₹111 per share, with the issue expected to raise ₹75.47 crore at the upper limit.

 

The company said the proceeds will be used to meet capital expenditure for upgrading and completing hotel properties, along with supporting general corporate purposes. Approximately ₹53.48 crore has been earmarked for enhancing hotel infrastructure and acquiring properties, with a focus on Tier-II and Tier-III cities.

 

Unistone Capital is acting as the sole book-running lead manager, while Bigshare Services has been appointed as the IPO registrar.