Shares in Supply :
Lock-in of shares is also near March 21st 2025
Actually only 15.8% of the shares o/s are locked in for a period of 18 months, i.e. till March 2025. Beyond this 15.8%, pre-IPO and anchor investors are free to sell and they have been selling through the last few months.
Blue Chandra and GTI Capital have in fact already sold down to their 18 month lock-in levels. So the selling overhang is not a March 2025 event, its already very much underway.
ACIC Portfolio: ( Good or Bad )
One of the bad side is they have diluted lot of equity,and got the land bank in Navi Mumbai and that’s written off ( 70cr )
The land issue was unfortunate but as Chinmaya pointed out I think the ACIC acquisition happened at a fair valuation. Not cheap (as you can imagine in the middle of a strong hotel upcycle), but fair, at around 13x EVEBITDA considering ACIC’s FY24 EBITDA nos. So I don’t think over-dilution happened.
Expansion Delay:
-. Samhi is having ongoing expansion of hotels which are not up in past 3 to 4 years ? Why it’s being delayed.
Caspia Pro Hotel , Bangalore expansion, Hyatt Regency etc…
Not sure if they have addressed this in the DRHP or the concalls, cannot recall. If I had to guess I would think it was due to a drag in free cash due to high debt and Covid. Hopefully these assets will be rebranded and functioning by H2 FY25 as management has guided.
Disc: Invested and biased.
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