Apeejay Surrendra Park Hotels, a stalwart in the Indian hospitality industry, is set to make waves with its upcoming Initial Public Offering (IPO). With a substantial anchor allotment, the company has raised an impressive Rs 409 crore, paving the way for its public subscription starting on February 5.
Anchor Allotment Insights
The strategic allocation of over 2.64 crore equity shares to 37 anchor investors showcases the confidence in Apeejay Surrendra Park Hotels. Notably, 8 domestic mutual funds have secured a significant portion, with Nippon Life India Trustee Ltd-A/C Nippon India Small Cap Fund leading the pack at 8.30% share.
IPO Details
The eagerly anticipated Rs 920 crore IPO comprises a fresh issue of equity shares amounting to Rs 600 crore and an offer for sale (OFS) of Rs 320 crore. Apeejay Pvt Ltd, a promoter group entity, will offload shares worth Rs 296 crore, adding to the allure for prospective investors.
Strategic Selling Shareholders
Intriguingly, alongside Apeejay Pvt Ltd, other selling shareholders include RECP IV Park Hotel Investors and Co-Investors. Potential IPO participants can be assured of a vibrant and multifarious investment opportunity thanks to this unique mix.
Market Capitalization Aspiration
Apeejay Surrendra Park Hotels, currently the eighth-largest hotel chain in India, is eyeing a post-issue market capitalization of Rs 3,307 crore at the upper price band. The company’s strong position in the hospitality industry is highlighted by its valuation.
Subscription Details
Investors have a window from February 5 to 7 to partake in the IPO, with a modest price band set between Rs 147 and Rs 155 per share. The lot size for retail category bids is 96 shares, with 10% of the net offer reserved. Non-institutional investors will find options tailored to their investment range, with specific bid lot sizes.
Key Dates and Listing
Bids will be finalized by February 8, and the listing is anticipated around February 12, promising a swift and efficient process for investors looking to capitalize on this exciting opportunity.
A Deep Dive into Apeejay Surrendra Park Hotels
A Hospitality Giant
Apeejay Surrendra Park Hotels commands a prominent position in the Indian hospitality landscape. A comprehensive and hospitable guest experience is ensured by this vast brand portfolio, which caters to a wide spectrum of consumers.
Diverse Brand Portfolio
The company operates its hospitality assets under various brands, including THE PARK, THE PARK Collection, Zone by The Park, and Zone Connect by The Park. With a broad range of consumers served by this extensive brand portfolio, a thorough and welcoming visitor experience is guaranteed.
Culinary Delights and Retail Ventures
Beyond its hospitality offerings, Apeejay Surrendra Park Hotels boasts a network of 80 restaurants, nightclubs, and bars. These establishments contribute significantly to the company’s revenue, with the sale of food and beverages, including wine and liquor, contributing a substantial Rs 228 crore in FY23.
Retail foray with ‘Flurys’
Diversifying its footprint, the company has made strides in the retail food and beverage industry through its brand ‘Flurys.’ This strategic move positions Apeejay Surrendra Park Hotels not just as a hospitality giant but as a versatile player in the broader F&B landscape.
Financial Health and Performance
As of September 2023, Apeejay Surrendra Park Hotels reported a robust revenue growth of 14%, reaching Rs 272 crore. The profit after tax also witnessed a commendable 24% increase, reaching Rs 22.9 crore.
Utilization of IPO Proceeds
The funds raised from the IPO’s fresh issue are earmarked for debt repayment and general corporate purposes. This careful allocation demonstrates the company’s commitment to maintaining a sound financial structure and ensuring sustainable growth.
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