Apeejay Surrendra Park Hotels soon to introduce IPO worth Rs. 920 crore

Apeejay Surrendra Park Hotels will be opening for public bidding on Monday, February 5, and they are looking to raise Rs. 920 crore. The issue will close on February 7. The IPO of this company is a mix of fresh issue of shares worth Rs. 600 crore and an offer-for-sale of shares worth Rs. 320 crore by the promoter and investors. The interested investors can bid for a minimum lot size of 96 equity shares and its multiples thereafter.

Apeejay Surrendra Park Hotels, was established in 1987, is engaged in the hospitality business operating under the brand names of 'The Park'.  The grey market premium (GMP) of the company remained nil even after the price band was announced. The company is also engaged in the business of retail food and beverage industry through its retail brand 'Flurys'.

Promoter Apeejay will offer shares worth Rs. 296 crore for sale, while investors RECP IV Park Hotel Investors and RECP IV Park Hotel Co-Investors will offload Rs. 23 crore and Rs 1 crore worth of shares. The promoters are holding a 94.18 percent stake in the hospitality chain RECP IV Park Hotel Investors 5.53 percent. JM Financial, Axis Capital, and ICICI Securities are the merchant bankers to the IPO.

Apeejay Surrendra Park Hotels currently operates 27 hotels across different categories luxury boutique, upscale, and upper midscale, across major metro cities of India like, New Delhi, Chennai, Hyderabad, Kolkata, Bangalore, Mumbai, Coimbatore, Indore, Goa, Jaipur, Jodhpur, Jammu, Navi Mumbai, Visakhapatnam, Port Blair, and Pathankot, offering a total of 2,111 rooms as of August 2023.

Apeejay Surrendra Park Hotels, which ranks as the eighth largest in India in terms of chain-affiliated hotel rooms inventory, owned 45,800 rooms as of September 2023. The company also operates 80 restaurants, night clubs and bars, offering a wide selection of culinary experiences as of March 31, 2023. The company owns restaurants under the brand name of Zen, Lotus, Aish, Saffron, Fire, Italia, 601, The Bridge, The Street, Verandah, Vista, Bamboo Bay, Monsoon, Mist, Love and Bazaar.