Apeejay Surrendra Park Hotels IPO; Hotels company IPO to begin from February 05; 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 around Rs 920 crores through public issue IPO

Apeejay Surrendra Park Hotels IPO is a public offering of shares by Karam Paul, Priya Paul, Apeejay Surrendra Trust and Great Eastern Stores Pvt. Ltd.. The IPO will open on February 05 and will close on February 07. The price band is ₹147 to ₹155 per share and the lot size is 96 shares. The issue size is ₹920. crore. The shares are expected to be listed on NSE, BSE on February 12 (^). Some additional information that you may find useful are: Company's business model is to operate hotels through a combination of: (i) direct ownership of hotel properties, (ii) longterm lease for the land and/or buildings, (iii) operation and management agreements on a contractual basis using company's brand on hotels constructed by third parties.: (**) - based on higher price band (^) indicative date

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Key Pointers of Apeejay Surrendra Park Hotels IPO:

Promoters of the company are Karam Paul, Priya Paul, Apeejay Surrendra Trust and Great Eastern Stores Pvt. Ltd. Currently promoters hold 94.18189762888% stake in the company. While post-equity promoters stake will be 68.15%

Company has not undertaken Pre-IPO placement.

• Company aims to raise between Rs 920 to 920 crs through this IPO.
• The net proceeds of the issue will be utilized to 1) Repayment/ prepayment, in full or in partof certain outstanding borrowings amounting to Rs. 550 crores and 2) General corporate purposes
• Anchor bidding is expected to commence one day prior to the IPO dates. Tentative anchor bidding date would be 02-Feb-24.
• Price band for the IPO has been fixed at Rs 147 to 155 per share and bid lot are in multiple of 96 shares. The implied market cap post-issue at Rs 3,168 to 3,307 crs.
• As per the tentative schedule, allotment date of this IPO is most likely on February 08 and share are expected to be listed on NSE, BSE on February 12.
• Company has direct competition in the Hotels industry. In listed space it has competition with Park Hotels, Chalet Hotels, Lemon Tree Hotels, Indian Hotels and EIH Limited amongst others.
• JM Financial, Axis Capital, ICICI Securities has been appointed as Merchant Banker to the issue. Link Intime India Pvt. Ltd. has been appointed as official registrar of the issue.

About Apeejay Surrendra Park Hotels Limited

Apeejay Surrendra Park Hotels Limited

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’.

Company's business model is to operate hotels through a combination of: (i) direct ownership of hotel properties, (ii) longterm lease for the land and/or buildings, (iii) operation and management agreements on a contractual basis using company's brand on hotels constructed by third parties.

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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, IPO Status, 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.