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PNN
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. (ADVERTORIAL DISCLAIMER: The above press release has been provided by PNN. ANI will not be responsible in any way for the content of the same)
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