- Bid /Offer will open on Monday, February 5, 2024 and close on Wednesday, February 7, 2024.
- Bids can be made for a minimum of 96 Equity Shares and in multiples of 96 Equity Shares thereafter
- The company plans to use most ₹550 crore of the fresh issue proceeds to repay debt
- The hospitality major is planning to make forays in Gujarat and the pilgrimage town of Ayodhya in UP
NE BUSINESS BUREAU
AHMEDABAD, FEB 2
Apeejay Surrendra Park Hotels Limited on Friday said it has set a price band between ₹147 and ₹155 per equity share for its initial public offering (IPO). The company, through its IPO, aims at raising ₹920 crore comprising ₹600 crore through a fresh share sale and ₹320 crore through an offer for sale.
The issue is scheduled to be active from Monday, February 5 to Wednesday, February 7.
The floor price of ₹147 reflects 53.45 times the price-to-earnings ratio based on diluted EPS (earnings per share) for the fiscal year 2023.
While the cap price of ₹155 translates to a ratio of 56.36 times.
Bids can be made for a minimum of 96 Equity Shares and in multiples of 96 Equity Shares thereafter.
Promoter Apeejay is offering shares worth ₹296 crore for sale while investors RECP IV Park Hotel Investors and RECP IV Park Hotel Co-Investors will offload ₹23 crore and ₹1 crore worth of shares. Apeejay holds a 94.18 per cent stake in the hospitality chain while RECP IV Park Hotel Investors have 5.53 per cent.
“We see growth in all segments including owned and leased properties and those under management. Our pipeline is a healthy mix of owned, as well as leased and managed contracts. F&B operations have been a cornerstone of our business. We run about 81 bars, restaurants and nightclubs across different brands. This gives us repeat customers and the country’s highest occupancy rate at 92%. That’s what makes our brands exciting to stay in,” said Priya Paul, Chairperson & Executive Director Priya Paul and the First Lady of boutique hotels in India.
Answering a query on making foray into Gujarat, Paul said, “Post-IPO we have planned to make forays into Gujarat and the holy town of Auodhya.”
The IPO allocation is structured with 75% reserved for qualified institutional buyers, 15% for non-institutional investors, and the remaining 10% for retail investors.
The company plans to use most ₹550 crore of the fresh issue proceeds to repay debt. As of January 2, Apeejay Surrendra Park Hotels had a debt of ₹582.28 crore on consolidated basis. The Company proposes to utilise the balance amount towards general corporate purposes.
Apeejay Surrendra Park Hotels is recognized as the eighth-largest hotel chain in India, with a robust portfolio, including renowned brands like The Park, The Park Collection, and Zone by Park. With over five decades of experience in hotel ownership and operation, the company manages 27 hotels across luxury boutique upscale and upper-midscale categories, alongside 80 restaurants, nightclubs, and bars as of March 2023.
Apeejay Surrendra Park Hotels ranks as the eighth largest in India in terms of chain-affiliated hotel rooms inventory. As of September 2023, it owned 45,800 rooms.
Financially, the company has shown promising growth, with revenue up by 14% to ₹272 crore for the six months ending September 2023, and a 24% increase in profit after tax to ₹ 22.9 crore during the same period.
JM Financial Limited, Axis Capital Limited and ICICI Securities Limited are the Book Running Lead Managers or BRLMs to the Issue.
