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₹111 - 111
Suba Hotels Ltd
Hotels & RestaurantsIPOSME
₹111 - 111
We are one of India's largest domestic hotel chains in the mid-market sector with 88 operational hotels as of July 2025, comprising 4,096 keys across over 50 cities, around 81% of which are located in emerging markets in tier 2 and 3 cities. The hotel chain also boasts a portfolio of 40 hotels in the pre-opening phase, encompassing 1,831 rooms. (Source: JLL Report). We operate in the mid-market hotel sector, consisting of upscale, upper-midscale, midscale, and economy brands domestic as well as international. We primarily cater to guests across business, leisure, and religious tourism, delivering superior service standards at attractive price points. Our hotel portfolio encompasses a diverse range of business models, including owned, managed, revenue share & lease, and franchised properties. We currently categorize our hotel portfolio into four distinct hotels categories based on business models that includes owned, managed, revenue share & lease and franchised hotels.
Lot1,200Min Invest₹2,66,400Face Value₹10Issue Size₹75 CrFresh Issue₹75 CrListing Price₹154CMP₹86
Timeline
29 Sept
Bidding opens
1 Oct
Bidding closes
3 Oct
Allotment
6 Oct
Refund & demat credit
7 Oct
Listing
Subscription
Subscription opens once dates are announced
Reports
Offer Details
Terms
Issue Size₹75 Cr0.68 Cr shares
Fresh Issue₹75 Cr
Face Value₹10
Lot Size1,200 shares
ReservationQIB 50% · NII 15% · RETAIL 35%
Application Sizes
Retail₹2,66,4001-1 lots
sNII₹2,66,400from 2 lots
bNII₹10,65,600from 8 lots
Managers & Registrar
Lead ManagerUnistone Capital Pvt Ltd
RegistrarBigshare Services Pvt Ltd
Ownership & Proceeds
Shareholding
CategoryPre IPOPost IPOPromoter Group84.69%60.93%Public15.31%39.07%
Objects of the Issue
- Funding capital exp requiremnts upgradation and last-mile funding of hotel premises
- General corporate purposes
Financials
Profit & Loss
| Financial Year | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|
| RevenueCr | 35 | 52 | 79 | 114 |
| Operating ProfitCr | 9 | 13 | 23 | 25 |
| OPM% | 25.1 | 25.8 | 29.1 | 22.1 |
| PBTCr | 6 | 11 | 19 | 22 |
| PATCr | 3 | 9 | 15 | 18 |
| EPS | 2 | 5 | 9 | 9 |
Balance Sheet
| Financial Year | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|
| Equity CapitalCr | 5 | 5 | 17 | 24 |
| ReservesCr | 19 | 28 | 30 | 114 |
| BorrowingsCr | 46 | 46 | 50 | 52 |
| Total AssetsCr | 85 | 100 | 123 | 220 |
Cash Flow
| Financial Year | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|
| Operating Cash FlowCr | 10 | 11 | 4 | -57 |
| Investing Cash FlowCr | -12 | -8 | -5 | -13 |
| Financing Cash FlowCr | 4 | -1 | 3 | 71 |
| Net Cash FlowCr | 2 | 1 | 2 | 1 |
Strengths & Risks
Strengths · as stated in the DRHP
- One of India's leading domestic hotel chains in the mid-scale sector with a differentiated business model.
- Wide geographical coverage.
- Established distribution network.
- Ability to acquire non / underperforming hotels and demonstrated track record to re-rate hotel's performance through renovation and / or rebranding.
- Experienced promoters and management team.
Strategies · as stated in the DRHP
- Invest in hotels stuck for last mile funding.
- Identifying and renovating distressed hotel properties.
- Increase in sales and marketing team bandwidth.
- Deploy loyalty program.
Risks · as stated in the DRHP
- A large portion of our revenue is realised from our Owned Hotels and revenue share and lease, contributing approximately 22.08% and 45.63%, respectively for the financial year 2025 of the revenue from operations in key geographies and any adverse developments affecting these hotels or the regions in which they operate, could have an adverse effect on our business, results of operation, cash flows and financial condition.
- We derive a significant portion of our room revenue from corporate and leisure accounts from our owned and revenue share and lease hotels. Changes in travellers' preferences due to increased use of telepresence equipment, cost of travel, spending habits, and other factors may adversely affect the demand for hotel rooms, thereby adversely impacting our business, results of operations, financial condition, and cash flows.
- Certain of our hotels which we operate are leased from third parties. If we are unable to comply with the terms of the lease or license agreements, renew our agreements or enter into new agreements on favourable terms, or at all, our business, results of operations and financial condition and cash flows may be adversely affected.
- We have entered into master franchise agreement dated May 13, 2022 with Choice Hotels Licensing B.V. for three brands of Choice Hotels in India - Clarion (upscale), Quality (upper midscale) and Comfort (midscale). For the Financial Year 2025, our hotels franchised under MFA of Choice Hotels - contributed 9.97% to our revenue from operations. If these agreements are terminated or not renewed, our business, results of operations and financial condition may be adversely affected.
- Our company has not complied with the provisions of Sections 185 and 186 of the Companies Act, 2013, regarding loans, investments, guarantees, and securities.
- Certain portion of our hotel bookings (average 22.47% of room revenue for financial year 2025) originate from online travel agents and intermediaries. In the event such online travel agents and intermediaries continue to gain market share compared to our direct booking channels; they may be able to negotiate higher commissions for services provided, or demand significant concessions or reduced room rates causing an adverse effect on our margins, business, and results of operations.