India’s travel and tourism sector reached ₹22.70 Lakh Cr in 2024, surpassing the pre-pandemic level. According to the World Travel and Tourism Council (WTTC), India will have one of the largest travel and tourism contributions to the GDP of ₹46.43 Lakh Cr by 2034.
Leveraging this momentum, Suba Hotels Limited, a leading mid-market hotel chain, is launching a ₹75.47Cr IPO of 0.68 Cr shares through a fresh issue on NSE EMERGE.
Suba Hotels Limited displayed a revenue growth from ₹54.34 Cr in 2024 to ₹107.59 Cr in 2025, with profit increasing from ₹1.65 Cr to ₹4.80 Cr, proving its ability to turn demand into financial performance.
This blog guides investors with an overview of the Suba Hotels IPO, including its timeline, face value, price band, allotment details, GMP, and general information.
Suba Hotels IPO Details
Presented below are the essential details of the Suba Hotels IPO.
| IPO Open Date | 29 September 2025 |
| Close Date | 1 October 2025 |
| Face Value | ₹10 |
| Price Band | ₹105-₹111 |
| Issue size | 67,99,200 Equity Shares |
| Market Lot | 1200 |
| Sale Type | Fresh Capital |
| Offer for Sale | Not Applicable |
| Fresh Issue | 67,99,200 Equity Shares |
| Issue Type | Bookbuilding IPO |
| Listing At | NSE EMERGE |
| Total Issue Size (₹ Cr) | 75.47 |
| Reserved for Market Maker | 3,40,800 shares |
| Net Offered to Public | 64,58,400 shares |
| Minimum Investment(₹) | 2,66,400 |
| Retail Discount | Undisclosed |
Suba Hotels IPO Timeline
Important dates for investors for the IPO, including the opening and closing dates, allotment, refund, and listing, are mentioned below:
| IPO Open Date | 29 September 2025 |
| IPO Closing Date | 1 October 2025 |
| Tentative Allotment | 3 October 2025 |
| Initiation of Refunds | 6 October 2025 |
| Credit of Shares | 6 October 2025 |
| Tentative Listing Date | 7 October 2025 |
| Cut-off Time for UPI Mandate Confirmation | 1 October 2025 |
Suba Hotels IPO Grey Market Premium (GMP Today)
| Date | GMP (₹) | Estimated Listing Price (₹) |
| 26 September 2025 | 0 | 111 |
Suba Hotels IPO Reservation
The reservation of shares for different investor categories is outlined below, providing an overview of their positions and potential allocations.
| Category | %Shares Offered |
| Market Maker | 5.01% |
| QIB | Maximum 50% |
| NII | Minimum 15% |
| Retail Shares Offered | Minimum 35% |
| Total | 100% |
Suba Hotels Key Performance Indicator (Figures in %)
Suba Hotels’ profitability and performance are reflected in these key performance indicators (KPIs). The following is a comparison of Suba Hotels’ KPIs over the last three years.
| KPI | 2025 | 2024 | 2023 |
| ROE | 31.82 | 27.71 | 11.86 |
| ROCE | 35.55 | 26.80 | 22.37 |
| Debt to Equity Ratio | 1.06 | 0.55 | 0.39 |
| RoNW | 31.82 | 27.71 | 11.86 |
| PAT Margin | 18.94 | 16.90 | 7.91 |
| EBITDA Margin | 29.09 | 26.18 | 24.85 |
Suba Hotels IPO Financials
The company has demonstrated consistent growth in revenue, profit, and total assets over the financial years presented in this table.
| 2025 (₹) | 2024 (₹) | 2023 (₹) | |
| Revenue | 7,998.49 | 5,299.61 | 3,519.86 |
| Total Asset | 12,303.97 | 10,007.09 | 8,523.16 |
| Profit | 1,515.14 | 895.87 | 278.32 |
Suba Hotels IPO Lot Size
This table describes the Suba Hotels IPO lot size, which helps investors figure out how much to invest, using the minimum and maximum bid quantities for each category.
| Application | Lot Size | Shares | Amount(in ₹) |
| Individual investors (Retail) (Min) | 2 | 2,400 | 2,66,400 |
| Individual investors (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 |
Suba Hotels IPO Promoter Holding
This shows how much of the company the promoters owned before and after the IPO.
| Promoter Holding Pre Issue | 84.69% |
| Promoter Holding Post Issue | 60.93% |
The promoters of Suba Hotels Limited comprise Mansur Mehta, Mubeen Mehta, and Click Hotels Pvt. Ltd.
Suba Hotels IPO Anchor Investors Details
The following details reflect the reservation for anchor investors in the Suba Hotels IPO.
| Bid Date | 26 September 2025 |
| Shares Offered | 60% of QIB |
| Anchor Portion Size (In Cr.) | Undisclosed |
| Anchor lock-in period end date for 50% shares (30 Days) | November 2, 2025 |
| Anchor lock-in period end date for remaining shares (90 Days) | January 1, 2025 |
Suba Hotels IPO Prospectus
The official SEBI filings for the Suba Hotels IPO are provided below.
About Suba Hotels
Suba Hotels Limited, incorporated in 1997, is a leading domestic mid-market hotel chain in India, operating 88 hotels with 4,096 keys across over 50 cities, as of July 2025. Approximately 81% percent of its properties are in tier 2 and tier 3 cities. Interestingly, about 40 hotels are about to open, adding up another 1,831 rooms to their inventory.
The company’s portfolio includes owned, managed, revenue-share, and lease and franchised models. As of July 2025, the group includes 5 owned hotels with 227 rooms, 19 managed hotels with 823 rooms, 16 hotels on revenue-share & lease with 577 rooms, and 48 franchised hotels with 2,469 rooms.
Objectives of the Suba Hotels
The company plans to utilise its net proceeds as under:
| Fund Utilisation | Amount (in ₹ lakh) |
| Capital Expenditure for upgrading and end-stage financing of hotels | 5,347.56 |
| General Corporate Purposes | Undisclosed |
Strength Of Suba Hotels
- Leading Market Player: Suba Hotels Private Ltd. is a leading Indian mid-market hotel chain. It currently operates 88 hotels across more than 50 cities, with 40 hotels in the pre-opening stage. The business model includes both owned and third-party managed properties.
- Strategic Location: The Suba Hotels strategically locates its hotels near the business hubs, Special Economic Zones (SEZs), industrial centers, airports, ports, and railway terminals. This diversifies the market and customer base, balances seasonal revenue and builds brand recognition.
- Strong Network: Suba Hotels has a strong sales network across India, which attracts corporate travellers from BFSI, IT, FMCG, Pharma, and PSUs. Its partnership with travel agencies and participation in business fairs increase market visibility.
- Value-Added Expertise: The group indulges value-added renovations, which transform underperforming assets through sustainable and tech-driven upgrades like smart rooms and high-speed internet. This enhances customer experience and property value.
Risk of Suba Hotels
- Revenue Concentration: Suba Hotels’ owned hotels contributed around 22.08% of total revenue, while revenue-share and lease hotels contributed 45.63% in 2025. Therefore, negative events in such properties or regions will impact their operations and financial stability.
- Competitive Market: The industry is highly competitive, and the inability to differentiate or compete could lead to a reduced market share and decrease financial performance.
- Execution and Capex Risks: The absence of committed capital expenditure plans for the IPO proceeds presents a risk. This could result in increased costs and hurt profitability.
- Debt and Interest Exposure: Their debts require heavy cash flows, and the existing debt terms and fluctuations in interest rates might limit operational flexibility and affect growth.
Other Recent IPO List
Check out the current and upcoming IPOs in September 2025:
| Jaro Institute IPO | Om Metallogic IPO |
|---|---|
| VijayPD Ceuticals IPO | Sodhani Capital IPO |
| Jain Resource Recycling IPO | Fabtech Technologies |
Conclusion
Suba Hotels IPO offers investors entry into a leading mid-market hotel chain. Its diversified locations, strong corporate network, and expertise in value-add renovations show clear demand capture and brand scalability.
While long-term investors with a moderate risk tolerance may find this IPO a strategic entry point, potential adverse risks include revenue concentration, competition, and expansion without committed capital expenditure.
FAQs
Suba Hotels IPO is a ₹75.47 Cr bookbuilt issue of 0.68 Cr fresh equity shares of Suba Hotels Limited, to be listed on NSE EMERGE.
Log in to Zerodha Kite, search for Suba Hotels IPO, and click Apply.
Next, enter your UPI ID.
Then, enter Quantity and Price and click the undertaking box.
Finally, swipe the Submit button and accept the mandate on the UPI app.
Suba Hotels IPO will open on 29 September 2025 and close on 1 October 2025.
The minimum lot size for Suba Hotels IPO is two lots, which is 2,400 shares. It requires a minimum investment of ₹2,66,400.
Investors can apply for the Suba Hotels IPO online either through UPI or ASBA as a payment method.
The allotment date for Suba Hotels IPO is scheduled on 3 October 2025.
The listing of Suba Hotels IPO shares is scheduled on 7 October 2025, on NSE EMERGE.
