The Indian IPO market continues to see strong activity in 2025, with niche companies raising capital for expansion. Suba Hotels Limited, a domestic mid-market hotel chain, is set to open its IPO on September 29, 2025, providing investors with an opportunity to participate in the growth of a company with 88 operational hotels and 40 hotels in the pre-opening phase.
About Suba Hotels Ltd.
Established in October 1997, Suba Hotels Limited operates a diversified portfolio of mid-market hotels, spanning upscale, upper-midscale, midscale, and economy segments. The company’s current operational footprint includes 88 hotels with 4,096 keys across 50 cities, primarily in tier 2 and tier 3 locations.
Additionally, 40 hotels are in pre-opening, adding 1,831 rooms. The company operates through owned hotels, managed hotels, revenue-share & lease hotels, and franchised hotels, with properties in Ahmedabad, Bhuj, Junagadh, Vadodara, and Pithampur.
Competitive Strengths:
- One of India’s leading domestic mid-market hotel chains
- Wide geographic coverage and diversified hotel formats
- Established distribution and booking network
- Capability to acquire and renovate underperforming hotels
- Experienced management and promoter team
Suba Hotels IPO Details
The Suba Hotels IPO is a book-building issue of ₹75.47 crore, entirely a fresh issue of 0.68 crore shares. The IPO will be listed on NSE SME.
IPO Timeline:
| Event | Date (Tentative) |
| IPO Open Date | Sep 29, 2025 |
| IPO Close Date | Oct 1, 2025 |
| Tentative Allotment | Oct 3, 2025 |
| Initiation of Refunds | Oct 6, 2025 |
| Credit of Shares to Demat | Oct 6, 2025 |
| Tentative Listing Date | Oct 7, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on Oct 1, 2025 |
Key IPO Details:
| Parameter | Details |
| Face Value | ₹10 per share |
| Issue Price Band | ₹105 – ₹111 per share |
| Lot Size | 1,200 shares |
| Sale Type | Fresh Issue |
| Issue Type | Bookbuilding IPO |
| Total Issue Size | 67,99,200 shares (aggregating up to ₹75.47 Cr) |
| Reserved for Market Maker | 3,40,800 shares (aggregating up to ₹3.78 Cr) NNM Securities Pvt.Ltd. |
| Net Offered to Public | 64,58,400 shares (aggregating up to ₹71.69 Cr) |
| Shareholding Pre-Issue | 1,74,43,316 shares |
| Shareholding Post-Issue | 2,42,42,516 shares |
Investor Category Reservation:
- QIB: Not more than 50% of net issue
- Retail: Not less than 35% of net issue
- NII: Not less than 15% of net issue
Lot Size & Investment:
| Application | Lots | Shares | Amount |
| Retail (Min) | 2 | 2,400 | ₹2,66,400 |
| Retail (Max) | 2 | 2,400 | ₹2,66,400 |
| S-HNI (Min) | 3 | 3,600 | ₹3,99,600 |
| S-HNI (Max) | 7 | 8,400 | ₹9,32,400 |
| B-HNI (Min) | 8 | 9,600 | ₹10,65,600 |
Promoter Holding:
The company’s promoters are Click Hotels Private Limited, Mansur Mehta, and Mubeen Mehta.
- Pre-IPO: 84.69%
- Post-IPO: NA
Book Running Lead Manager: Unistone Capital Pvt. Ltd.
Registrar: Bigshare Services Pvt. Ltd.
Market Maker: NNM Securities Pvt. Ltd.
Suba Hotels Ltd.: Financials
Financial Highlights (₹ Crore):
| Period Ended | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
| Assets | 123.04 | 100.07 | 85.23 |
| Total Income | 79.98 | 53.00 | 35.20 |
| Profit After Tax | 15.15 | 8.96 | 2.78 |
| EBITDA | 23.27 | 8.75 | 13.87 |
| Net Worth | 47.61 | 32.33 | 23.46 |
| Reserves & Surplus | 30.17 | 27.57 | 18.70 |
| Total Borrowing | 50.23 | 45.73 | 46.09 |
Key Performance Indicators (FY2025):
| KPI | Value |
| Market Capitalisation | ₹269.09 Cr |
| ROE | 31.82% |
| ROCE | 35.55% |
| Debt/Equity | 1.06 |
| RoNW | 31.82% |
| PAT Margin | 18.94% |
| EBITDA Margin | 29.09% |
| Price to Book Value | 4.07 |
| EPS (Pre-IPO / Post-IPO) | ₹8.69 / ₹6.25 |
| P/E (Pre-IPO / Post-IPO) | 12.78x / 17.76x |
Objects of the Issue
The IPO proceeds are proposed to be used as follows:
| Object | Amount (₹ Crore) |
| Funding capital expenditure for hotel upgrades and last-mile funding | 53.48 |
| General corporate purposes | Balance |
Industry Outlook
The mid-market hotel sector in India continues to grow due to:
- Increasing domestic travel and tourism demand in tier 2 and 3 cities
- Expansion of managed and franchised hotel networks
- Opportunities to acquire and upgrade underperforming properties
- Rising preference for organised, branded mid-scale hotel chains
Suba Hotels’ differentiated business model, wide presence, and experienced management position it well to capture the growth in this sector.
Conclusion
Suba Hotels IPO presents an opportunity to invest in a leading domestic mid-market hotel chain with a strong operational footprint, ongoing expansion, and healthy financial growth. Investors should consider risks, including sector cyclicality, competition, and the impact of economic fluctuations on hotel occupancy and pricing.
If you are exploring more investment opportunities, check out our dedicated page on upcoming IPO listings to stay updated on the latest market offerings.
