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Apeejay Surrendra Park Hotels is gearing up for its initial public offering (IPO), scheduled to open for subscription on February 5, with the aim of raising ₹920 crore. The offering comprises a fresh issue of shares amounting to ₹600 crore and an offer-for-sale of shares worth ₹320 crore by the promoter and investors. Here are the key details surrounding the Apeejay Surrendra Park Hotels IPO.
The IPO subscription period is set to commence on February 5 and will conclude on February 7. Prior to the public offering, the anchor book will be opened for a day on February 2, allowing certain investors to subscribe to shares ahead of the general public.
The Apeejay Surrendra Park Hotels IPO consists of a fresh issue of shares amounting to ₹600 crore. Additionally, there is an offer-for-sale of shares worth ₹320 crore, with the promoter Apeejay contributing shares worth ₹296 crore for sale. Investors, specifically RECP IV Park Hotel Investors and RECP IV Park Hotel Co-Investors, will offload ₹23 crore and ₹1 crore worth of shares, respectively. Currently, Apeejay holds a dominant 94.18 percent stake in the hospitality chain, while RECP IV Park Hotel Investors have a 5.53 percent stake.
Apeejay Surrendra Park Hotels operates under various brands, including THE PARK, THE PARK Collection, Zone by The Park, and Zone Connect by The Park. The company has established itself as the eighth-largest chain-affiliated hotel in India, boasting an impressive inventory of 45,800 rooms as of September 2023.
The company has outlined its plans for the utilization of the fresh issue proceeds from the IPO. A significant portion, ₹550 crore, is earmarked for debt repayment. As of January 2, Apeejay Surrendra Park Hotels carried a consolidated debt of ₹582.28 crore.
Leading the IPO process are merchant bankers from JM Financial, Axis Capital, and ICICI Securities. Their expertise will play a crucial role in ensuring the smooth execution of the public offering.
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