Apeejay Surrendra Park Hotels files DRHP with SEBI for the proposed IPO; Key Details here

Apeejay Surrendra Park Hotels is into Consumer Hotels and is looking raise funds through Fresh Issue and Offer for Sale

Apeejay Surrendra Park Hotelsto raise Fresh Issue aggregating up to Rs. 650 crores and an Offer for Sale Equity shares aggregating up to Rs.400 crores IPO

Apeejay Surrendra Park Hotels IPO: Apeejay Surrendra Park Hotels Limited has filed Draft Red Herring Prospectus (DRHP) for proposed initial public offer (IPO) and raise funds through an offer of equity share capital having face value of Rs. 1 per share via initial public offering.

Initial Public Offer comprising of a Fresh Issue aggregating up to Rs. 650 crores and an Offer for Sale up to Rs. 400 crores.. JM Financial, Axis Capital, ICICI Securities have been appointed as lead merchant bankers for the proposed IPO. It has appointed Link Intime India Pvt. Ltd. as Registrar and Share transfer Agent. Company is yet to finalize issue size and some other important details relating to the IPO.

Details about upcoming IPO:
As per the details available in DRHP, fundraising will consist of an Fresh Issue aggregating Rs. 650 Crs andby Apeejay Surrendra Trust, Apeejay Private Limited, RECP IV Park Hotel Investors Ltd, RECP IV Park Hotel Co-Investors Ltd who will offload up to Rs. 80 crores, up to Rs. 296 crores, up to Rs. 230 crores and up to Rs. 1 crores worth of Equity shares..

Objects of the issue:
1) Repayment/ prepayment, in full or in partof certain outstanding borrowings amounting to Rs. 550 crores, and 2) General corporate purposes.

About Company:
Established in 1987, Apeejay Hotels group owns and operates Hotel chains in India and is 8th largest hotel Company amongst hotel chains with asset ownership in India (Source: Horwath HTL Report). Company operate hospitality assets under our own brands, “THE PARK”, “THE PARK Collection”, “Zone by The Park”, “Zone Connect by The Park” and “Stop by Zone”. Group is having a long-standing expertise of over five decades in the hospitality business of owning and operating hotels. Currently it operates 27 hotels across luxury boutique upscale brands, and upper midscale category. Along with it, established presence in the retail food and beverage industry through retail brand ‘Flurys’.

About Industry:
IMF’s World Economic Outlook Report (April 2023) forecasts India’s (a) GDP growth at 5.9% for FY24, 6.3% for FY25 and 6.2%, 6.1% and 6% for the next three years; and (b)per capita GDP to grow at 7.8% CAGR between FY23-FY28. The hotel industry would likely benefit from increased individual incomes, which can reasonably be expected to create additional discretionary spending, particularly as supply growth occurs in tier 2 and tier 3 markets. The rapid growth in India’s hospitality industryis expected at an overall supply CAGR of 7.8% from FY 23-27, across all segments (Source: Horwath HTL Report)

Source: SEBI, BSE, NSE, DRHP, Company, Industry Data

Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.