Introduction
Apeejay Surrendra Park Hotels, the 8th largest hotel chain in India, is set to embark on a new phase of growth with its upcoming Initial Public Offering (IPO). Scheduled to hit the market from February 5 to February 7, 2024, this IPO aims to raise approximately ₹920 crores. The offering comprises a fresh issue of ₹600 crores and an offer for sale of up to ₹320 crores, with a face value of ₹1 per equity share.
Company Overview
Established with a legacy of over five decades in the hospitality business, Apeejay Surrendra Park Hotels has solidified its position in the industry. Operating under various brands including “THE PARK,” “THE PARK Collection,” “Zone by The Park,” “Zone Connect by The Park,” and “Stop by Zone,” the hotel portfolio boasts a PAN-India presence. The company has been a pioneer in introducing the concept of luxury boutique hotels in India.
Brand Portfolio
Apeejay Surrendra Park Hotels caters to diverse customer segments with its upscale and upper mid-scale hotel categories. The “THE PARK” brand, positioned as upscale with a luxury boutique offering, focuses on design, style, and service to create unique experiences. “Zone by The Park” and “Zone Connect by The Park” cater to price-conscious and design-conscious customers at the upper mid-scale level. The recent addition, “Stop by Zone,” is an economy motel brand offering convenient accommodation.
Objectives of the Issue
The proceeds from the IPO will be utilized for the repayment/prepayment of certain outstanding borrowings and general corporate purposes. This strategic move positions Apeejay Surrendra Park Hotels to further strengthen its financial structure and pursue growth opportunities.
Financial Performance
Reviewing the financial performance, the company reported revenues of ₹524.43 crores in 2023, showcasing a robust growth trajectory. With an expertise spanning decades, Apeejay Surrendra Park Hotels has demonstrated resilience and adaptability in a dynamic market.
IPO Details
Investors keen on participating in this growth journey can subscribe to the IPO within the price band of ₹147 to ₹155 per share. The IPO size of ₹920 crores is distributed among different investor categories, with the retail quota set at 10%, QIB at 75%, and HNI at 15%.
Allotment and Listing Dates
The IPO opens on February 5, 2024, and closes on February 7, 2024. The allotment of shares will be finalized on February 8, with the IPO listing scheduled for February 12, 2024.
Market Lot and Quotas
Investors should note that the minimum market lot for Apeejay Surrendra Park Hotels IPO is 96 shares, requiring an application amount of ₹14,880. The distribution of quotas includes 10% for retail investors, 75% for QIBs, and 15% for HNIs.
Peer Group Comparison
In a peer group comparison, Apeejay Surrendra Park Hotels stands out among competitors in the hospitality industry. The company’s distinctive brands and diverse portfolio contribute to its competitive edge.
Promoters and Management
The driving force behind Apeejay Surrendra Park Hotels includes prominent names such as Karan Paul, Priya Paul, Apeejay Surrendra Trust, and Great Eastern Stores Private Limited. Their vision and leadership have been instrumental in shaping the company’s success.
IPO Review
While detailed IPO reviews from brokerage firms are yet to be released, the anticipation is high given the company’s strong market presence and strategic positioning in the hospitality sector.
How to Apply
Investors have multiple avenues to apply for the Apeejay Surrendra Park Hotels IPO. The application can be made online through ASBA (Application Supported by Blocked Amount) available in the bank account. Alternatively, investors can opt for offline methods using IPO forms downloaded via NSE and BSE.
Financial Valuation – FY2023
A snapshot of the company’s financial valuation for the fiscal year 2023 reveals an Earning Per Share (EPS) of ₹2.75, Return on Net Worth (RoNW) at 9.03%, and a Net Asset Value (NAV) of ₹31.81 per equity share.
Registrar and Contact Information
For IPO-related queries, the registrar for Apeejay Surrendra Park Hotels IPO is Link Intime India Private Ltd, reachable at +91-22-4918 6270 or via email at [email protected]. The company’s contact information is 17, Park Street, Kolkata 700 016, with a phone number of +91 33 2249 9000 and email at [email protected].
Conclusion
As Apeejay Surrendra Park Hotels ventures into the public market, it offers investors an opportunity to be part of a growth story deeply rooted in the hospitality sector. With a well-established presence, a diverse brand portfolio, and a commitment to customer satisfaction, the IPO is poised to attract significant attention.
Investors are encouraged to conduct their due diligence and consider consulting with financial experts before making investment decisions. The Apeejay Surrendra Park Hotels IPO is indeed a significant event in the IPO landscape, promising both growth potential and a glimpse into the future of India’s hospitality industry.
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