The initial public offering (IPO) of Apeejay Surrendra Park Hotels will open for pubic bidding on Monday, February 5. The company will be offering its shares in the price band of Rs 147-155 apiece. Interested investors can bid for a minimum lot size of 96 equity shares and its multiples thereafter. Bidding for the issue will conclude on Wednesday, February 7, 2023.
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Apeejay Surrendra Park Hotels, incorporated in 1987, is engaged in the hospitality business operating under the brand names of ‘The Park’, ‘The Park Collection’, ‘Zone by The Park’, ‘Zone Connect by The Park’ and ‘Stop by Zone’. The company is also engaged in the business of retail food and beverage industry through its retail brand ‘Flurys’.
The company is looking to raise a total of Rs 920 crore, including a fresh share sale of Rs 600 crore and an offer for sale (OFS) of Rs 320 crore worth shares. The selling shareholders include 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, in consultation with lead managers of the issue, reserved shares worth Rs 10 crore for the eligible company employees, who will get a discount of Rs 7 per shares during the bidding process. The anchor book for the issue will open on Friday, February 2.
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Apeejay Surrendra Park Hotels currently operates 27 hotels, which are spread across different categories such as luxury boutique, upscale, and upper midscale in cities like, New Delhi, Chennai, Hyderabad, Kolkata, Bangalore, Mumbai, Coimbatore, Indore, Goa, Jaipur, Jodhpur, Jammu, Navi Mumbai, Visakhapatnam, Port Blair, and Pathankot, offering a total of 2,111 rooms as of August 2023.
The company also operates 80 restaurants, night clubs and bars, offering a wide selection of culinary experiences as of March 31, 2023. The company owns restaurants under the brand name of Zen, Lotus, Aish, Saffron, Fire, Italia, 601, The Bridge, The Street, Verandah, Vista, Bamboo Bay, Monsoon, Mist, Love and Bazaar.
Apeejay Surrendra Park Hotels reported a net profit of Rs 22.95 crore with a revenue of Rs 272.31 crore for the period ended on September 30, 2023. The company had clocked a bottomline of Rs 48.06 crore with a revenue of Rs 524.43 crore for the financial year ended on March 31, 2023.
The company will be offering 75 per cent of the net offering to the qualified institutional investors (QIBs), whereas non-institutional investors (NIIs) will get 15 per cent of the net offering. The remaining 10 per cent of the net offer has been reserved for retail investors.
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JM Financial, ICICI Securities and Axis Capital are the book running lead managers of the Apeejay Surrendra Park IPO, while Link Intime India is the registrar for the issue. Shares of the company are likely to debut on both BSE and NSE with Monday, February 12 as the tentative date of listing.
