SAMHI Hotels and Zaggle Prepaid, which recently wrapped up their initial public offerings (IPOs), are slated to make their debut on the stock market this Friday, September 22, 2023. The swift listing is in line with the T+3 listing regime, a growing trend that allows companies to list their shares within three days of closing their IPOs. This approach was initially adopted by Ratnaveer Precision Engineering and later expedited by RR Kabel, which listed its shares just two days post-IPO.
The final share allotments for both SAMHI and Zaggle were confirmed on Thursday. Market analysts predict a modest premium of Rs 5 for SAMHI and Rs 14 for Zaggle in the unlisted market. SAMHI is projected to list at a premium of 4%, while Zaggle is expected to see an 8% premium.
Both SAMHI Hotels and Zaggle Prepaid concluded their IPOs on September 18, 2023. The response from analysts towards these IPOs has been mixed due to concerns about profitability and high valuations.
For the fiscal year ending March 2023, SAMHI Hotels reported that its operational revenue more than doubled to Rs 738 crore. Despite this increase, the company's consistent losses over the past three financial years have raised concerns among analysts. In FY23, SAMHI posted a loss of Rs 338.5 crore.
In contrast, Zaggle Prepaid reported revenues of Rs 553 crore and a profit after tax of Rs 22.9 crore in the same fiscal year.
The IPOs of both companies initially experienced lukewarm demand but managed to meet their targets on the final day of bidding. The issues for both companies opened on September 14, 2023. SAMHI Hotels' issue was oversubscribed by 5.33 times at close, while strong institutional interest led to Zaggle Prepaid's offer being oversubscribed by nearly 12.57 times on the third day.
SAMHI Hotels' Rs 1,370 crore IPO included a fresh equity issue of Rs 1,200 crore and an offer for sale (OFS) of 1.35 crore equity shares. Meanwhile, Zaggle's IPO consisted of a fresh equity issue of Rs 392 crore and an OFS of 1.04 crore shares.
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