New Delhi, October 7(HS): Hospitality firm Suba Hotels made a resounding debut on the stock market today, delighting its IPO investors with sharp early gains. Listed on NSE’s SME platform, the company’s shares opened at ₹154.20—an impressive 38.92% premium over the issue price of ₹111.

Following strong buying momentum, the stock swiftly hit the upper circuit limit of ₹161.90, giving IPO investors a return of nearly 45.86% on the very first trading day.The ₹75.47-crore IPO of Suba Hotels was open for subscription between September 29 and October 1 and received an enthusiastic market response, getting subscribed 15.33 times overall.

Among the categories, the qualified institutional buyers’ (QIB) portion was subscribed 20.98 times, non-institutional investors (NII) 22.41 times, and the retail portion 9.07 times.Under the IPO, the company issued 67,99,200 fresh equity shares with a face value of ₹10 each. Proceeds from the issue will be utilized to upgrade hotel premises, support last-mile project funding, meet working capital requirements, and for general corporate purposes.

Financially, Suba Hotels has displayed consistent growth. As per its prospectus, the company’s net profit jumped from ₹2.78 crore in FY 2022–23 to ₹8.96 crore in FY 2023–24 and further surged to ₹15.15 crore in FY 2024–25. Revenue also climbed steadily, recording a compound annual growth rate (CAGR) exceeding 50%, touching ₹79.98 crore.

The company’s debt position fluctuated marginally over the period, standing at ₹46.09 crore at the end of FY 2022–23, ₹45.73 crore in FY 2023–24, and ₹50.23 crore in FY 2024–25. Reserves and surplus saw healthy expansion, rising from ₹18.70 crore in FY 2022–23 to ₹27.57 crore in FY 2023–24, and further to ₹30.17 crore in FY 2024–25.

Hindusthan Samachar / Jun Sarkar