Apeejay Surrendra Park Hotels Announces IPO to Raise Rs 920 Crore: All You Need to Know
Apeejay Surrendra Park Hotels has announced the price band for its upcoming IPO, which aims to raise Rs 920 crore. The price range has been set at Rs 147-155 per share. The IPO will consist of a mix of fresh shares and an offer-for-sale by the promoters and other selling shareholders.
Investors can bid for a minimum of 96 shares and in multiples of 96 after that. The minimum investment for retail investors is Rs 14,112. The issue size has been reserved with 75% for qualified institutional buyers (QIB), 15% for high net-worth individuals, and 10% for retail investors.
The IPO will be open for subscription until February 7, with the anchor book opening on February 2. Promoter Apeejay will sell shares worth Rs 296 crore in the offer-for-sale, while other investors will offload shares worth Rs 24 crore.
The majority of the proceeds from the fresh issue will be used by Apeejay Surrendra Park Hotels to repay its debts and for general corporate purposes. The company currently has a total outstanding debt of Rs 582.28 crore.
Apeejay Surrendra Park Hotels is a well-known hotel chain that operates 27 hotels across luxury boutique upscale brands and upper-midscale categories. Additionally, the company runs 80 restaurants, night clubs, and bars within its hotels.
For the six months ended September 2023, the company reported a revenue growth of 14% and a profit after tax increase of 24%. The Park Hotels achieved a revenue per available room (RevPAR) of approximately Rs 557 crore, an occupancy rate of 91.77%, and an average room revenue of Rs 6 for the year ended March 2023.
JM Financial, Axis Capital, and ICICI Securities are the merchant bankers to the IPO, while Link Intime India is the registrar for the offering.
Investors are advised to consult with certified experts before making any investment decisions.
