Mumbai (Maharashtra) [India], October 3: Suba Hotels Limited’s initial public offering (IPO) concluded its third and final day with extraordinary investor interest, signaling robust appetite for India’s mid-market hotel operator. The issue, priced at ₹105-₹111 per share, raised ₹75.47 crore and closed the session at a healthy subscription of 15.33 times as of 5:14:18 PM on Day 3.
Day 3 highlights Suba Hotels’ IPO drew exceptional demand across investor categories, with overall subscription at 15.33x. Non-Institutional Investors (NIIs) led the pace at 22.41x, followed by Qualified Institutional Buyers ex-anchor at 20.98x, and retail investors at 9.07x. Anchor investors were fully subscribed at 1.00x, and total applications reached 11,281. The cumulative bid amount stood at ₹772.51 crore, vastly exceeding the ₹75.47 crore issue size.
What these numbers indicate Investor confidence remains high in Suba Hotels’ mid-market positioning, reflected in the broad demand from NIIs, FIIs ex-anchor, and retail participants. The strong NIIs and FIIs participation points to a belief in Suba Hotels’ growth potential across its 88-hotel portfolio in 50 cities, with emphasis on tier 2 and tier 3 markets.
Company profile and growth backdrop Suba Hotels Limited operates a predominantly mid-market hotel chain with 88 hotels and 4,096 keys. The portfolio comprises five owned hotels, 19 managed hotels, 14 revenue-share and lease hotels, and 48 franchised hotels. The expansion trajectory remains vigorous, with 40 hotels in the pre-opening phase adding 1,831 rooms to the pipeline.
Context: Day-by-day subscription dynamic Day 1 saw subdued response, with overall subscription at 0.62x. Day 2 improved modestly to 0.80x. Day 3 marked a surge to 15.33x, driven by NIIs at 22.41x and ex-anchor FIIs at 20.98x, with retail investors at 9.07x, and anchor investors fully subscribed.
Market positioning and outlook Suba Hotels is positioning itself in India’s expanding mid-market travel demand, particularly in tier 2 and tier 3 cities. The robust Day 3 response supports a favorable aftermarket scenario if price discovery aligns with investor demand.
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