Apeejay Surrendra Park Hotels IPO: Opens February 5, Unveils Price Band and Key Details

Apeejay Surrendra Park Hotels is planning to raise Rs 920 crore through its Initial Public Offering (IPO). This includes Rs 600 crore from a fresh sale of shares and Rs 320 crore through an offer for sale of existing shares.

Apeejay Surrendra Park Hotels IPO Open from Feb 5-7: Price Band Rs 147-155, Lot Size 96 Shares; Retail Portion at 10%, Employee Reservation Rs 10 Crore

Apeejay Surrendra Park Hotels is set to launch its Initial Public Offering (IPO) on February 5, allowing the public to bid for shares. The shares will be priced in the range of Rs 147-155 each. Interested investors can participate by bidding for a minimum lot size of 96 equity shares, and they can bid for additional shares in multiples of 96.

The bidding process for the IPO will close on Wednesday, February 7, 2023. During this period, investors can place their bids at the specified price range.

Apeejay Surrendra Park Hotels, established in 1987, is actively involved in the hospitality sector and operates under various brand names such as ‘The Park’, ‘The Park Collection’, ‘Zone by The Park’, ‘Zone Connect by The Park’, and ‘Stop by Zone’. The company’s primary focus is on providing diverse hospitality services, likely catering to different segments and preferences within the market.

Apeejay Surrendra Park Hotels aims to raise Rs 920 crore through its Initial Public Offering (IPO), comprising a fresh share sale of Rs 600 crore and an Offer for Sale (OFS) of Rs 320 crore. The OFS involves selling shares from existing stakeholders, including Apeejay Pvt Ltd (Rs 296 crore), RECP IV Park Hotel Investors (Rs 23 crore), and RECP IV Park Hotel Co-Investors (Rs 1 crore).

Apeejay Surrendra Park Hotels has set aside shares worth Rs 10 crore for eligible company employees in consultation with the lead managers of the issue. Employees will enjoy a discount of Rs 7 per share during the bidding process. Additionally, the anchor book for the issue is scheduled to open on Friday, February 2.

As of August 2023, Apeejay Surrendra Park Hotels manages a total of 27 hotels distributed across various categories including luxury boutique, upscale, and upper midscale.

These hotels are located in cities such as New Delhi, Chennai, Hyderabad, Kolkata, Bangalore, Mumbai, Coimbatore, Indore, Goa, Jaipur, Jodhpur, Jammu, Navi Mumbai, Visakhapatnam, Port Blair, and Pathankot. The company provides a combined offering of 2,111 rooms through its diverse portfolio of hotels, reflecting its presence in key urban and tourist destinations across India.

As of March 31, 2023, Apeejay Surrendra Park Hotels not only manages hotels but also operates 80 restaurants, nightclubs, and bars, providing a diverse range of culinary experiences. These establishments operate under various brand names, including Zen, Lotus, Aish, Saffron, Fire, Italia, 601, The Bridge, The Street, Verandah, Vista, Bamboo Bay, Monsoon, Mist, Love, and Bazaar.

For the period ending on September 30, 2023, Apeejay Surrendra Park Hotels reported a net profit of Rs 22.95 crore, along with a revenue of Rs 272.31 crore. In comparison, for the financial year ending on March 31, 2023, the company had recorded a higher net profit of Rs 48.06 crore and a revenue of Rs 524.43 crore.

In the upcoming IPO of Apeejay Surrendra Park Hotels, the distribution of shares is structured as follows: 75% of the net offering is allocated for Qualified Institutional Investors (QIBs), 15% is designated for Non-Institutional Investors (NIIs), and the remaining 10% is reserved for Retail Investors.

JM Financial, ICICI Securities, and Axis Capital are the appointed Book Running Lead Managers for the Apeejay Surrendra Park Hotels IPO. Additionally, Link Intime India will serve as the registrar for the issue, overseeing various administrative aspects related to share allotment and other related processes.

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