PNN
Mumbai (Maharashtra) [India], September 25: Suba Hotels Limited, one of India's leading domestic hotel chains in the mid-market hospitality segment, announced the launch of its Initial Public Offering (IPO), which is set to open on Monday, September 29, 2025, and will close on Wednesday, October 1, 2025.
The Company operates across upscale, upper-midscale, midscale, and economy hotel formats, with a strong presence in Tier 2 and Tier 3 cities. As of July 2025, Suba had 88 operational hotels with 4,096 keys across 50+ cities, along with 40 upcoming properties comprising 1,831 rooms. Suba's asset-light business model spans owned, managed, revenue-share, leased, and franchised hotels, and is further strengthened by its exclusive master franchise rights for Choice Hotels' international brands - Comfort, Clarion, and Quality in India.
The Company intends to utilize the IPO proceeds towards funding capital expenditure requirements for upgrades and last-mile funding of hotel premises and general corporate purposes, enabling further scale-up in high-potential domestic and international markets.
IPO Details
- Issue Size: Up to 67,99,200 equity shares of face value ₹10 each
- Total Issue Size: ₹75.47 crore (at upper price band)
- Price Band: ₹105 - ₹111 per equity share
- Post-Issue Market Capitalization: ₹269.12 crore (at upper price band)
- Lot Size: 1,200 equity shares
- Listing Platform: NSE Emerge
IPO Timeline
- Anchor Investor Bidding Date: Friday, September 26, 2025
- Offer Opens: Monday, September 29, 2025
- Offer Closes: Wednesday, October 1, 2025
- Listing Date: Tuesday, October 7, 2025*
Share Allocation
- Qualified Institutional Buyers (QIBs): Up to 50% of Net Issue (including Anchor Investors, up to 60% discretionary allocation)
- Non-Institutional Investors (NII): Not less than 15% of Net Issue
- Retail Individual Investors (RII): Not less than 35% of Net Issue
- Market Maker Reservation: 3,40,800 equity shares
Utilisation of Net Proceeds
- Funding Capital Expenditure Requirements towards upgradation and last-mile funding of hotel Premises - ₹ 5,347.56 lakhs
- General Corporate Purposes
Offer Intermediaries
- Book Running Lead Manager: Unistone Capital Private Limited
- Registrar to the Offer: Bigshare Services Private Limited
Management Commentary
Mr. Mansur Mehta, Chairman and Managing Director of Suba Hotels Limited, said:
"Over the last two decades, we have built Suba into a trusted mid-market hospitality brand with a diversified portfolio across India's key business and leisure hubs. With our asset-light model, global brand partnerships, and expansion into Tier 2 and Tier 3 cities, we are uniquely positioned for sustainable growth. The IPO will help us strengthen our balance sheet and accelerate our expansion plans."
Mr. Brijesh Parekh, Founder of Unistone Capital Private Limited, added:
"We are proud to partner with Suba Hotels Limited for their IPO journey. Suba Hotels is well-placed to capture India's rising hospitality demand, especially in underserved Tier 2 and Tier 3 markets. Its strong multi-brand portfolio, proven ability to acquire and turn around assets, and strategic international tie-ups make this IPO an attractive opportunity for investors."
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