Suba Hotels IPO is opening from September 29 to October 1, 2025, with a price band of ₹105 to ₹111 per equity share and a lot size of 1,200 shares. The IPO aims to raise ₹75.47 crore through a fresh issue of shares, supporting capital upgrades and expansion of its mid-market hotel chain network. With revenue growing 51% and profit after tax up 69% year-over-year, Suba Hotels IPO offers investors exposure to India’s expanding hospitality sector and rising travel demand, especially in emerging towns and leisure segments.
₹00
₹111
₹
Expert Opinions
Market sentiment toward Suba Hotels IPO is notably upbeat, driven by rapid revenue and profit growth as well as strong anchor investor interest. The company’s strengths are its diversified hotel network of 88 properties across over 50 cities, asset-light expansion model through management and franchise contracts, and demonstrated ability to renovate and scale underperforming projects.
Key risks are exposure to revenue concentration from certain regions, execution risk on capex, competitive pressures in the highly fragmented hospitality sector, and moderate indebtedness. For financial year 2025, the Suba Hotels IPO delivers a Return on Equity (ROE) of 31.82%, Return on Capital Employed (ROCE) of 35.55%, and Net Asset Value (NAV) of ₹27.29, underscoring strong profitability and capital efficiency. Long-term investors may benefit from rising travel demand and market penetration, though short-term volatility and sector cyclicality should be considered.
Investor Considerations
Suba Hotels IPO highlights robust company performance with revenue reaching ₹79.98 crore and PAT margin clocking 18.94% in FY 2025. The mid-market hospitality sector outlook is favourable, powered by India’s growing travel and tourism spend and rapid expansion in tier 2 and 3 locations. The Suba Hotels IPO valuation for financial year 2025 shows a Price to Book Value of 4.07, EBITDA Margin of 29.09%, and Debt/Equity ratio of 1.06, reflecting strong profitability, asset efficiency, and moderate leverage.
Growth prospects are bolstered by an asset-light model, rapid scale-up capacity, and anchor investor interest. Risks include regional revenue concentration, competitive threats, execution risks, and moderate indebtedness. Long-term investors may find exposure to expanding travel demand attractive, while short-term investors should factor in sector cyclicality and market volatility.
FAQs
Suba Hotels IPO Current GMP is ₹00.
Suba Hotels IPO Expected Returns is 0.00%.
Suba Hotels IPO estimated listing price is ₹111.