The first mainboard initial public offering (IPO) of the month, Apeejay Surrendra Park opened for the public subscription on 5 February in an attempt to raise Rs 920 crore with the combination of fresh issuance and offer-for-sale (OFS) component.
The issue raised Rs 409 crore in the anchor round on 2 February, whereas the retail investors bidding, which will remain open from 5 February to 7 February, witnessed 0.55 times initial subscription on its first day.
The tentative dates for the allotment and listing for the issue is kept on Thursday 8 February and Monday 12 February respectively.
The issue consists of fresh issuance worth Rs 600 crore and OFS worth Rs 320 crore with a price band of Rs 147 to Rs 155.
JM Financials, ICICI Securities and Axis Capital are the book running lead managers for the issue, Link Intime is the registrar to the issue.
The minimum amount required for the retail investors to bid for one lot containing 96 shares is 14,880. Notably, the retail investors will share 17.81 per cent reservation in the issue, wherein employees will get 2.05 per cent reservation.
Currently, the promoters cumulatively own 94.18 per cent stake in the company which will be reduced to 68.13 per cent post-issue.
The 600 core crore proceeds will be used towards repayment of full or partial of certain debt availed by the firm and general corporate purposes. Notably, as of 30 September 2023, the total borrowing of the company stood at Rs 597.09 crore.
Firm’s Financials
The firm clocked revenue of Rs 524.43 crore in FY23, compared to Rs 267.83 crore in FY22. In the first two quarters of FY24, the company clocked revenue of Rs 272 crore. The firm’s profit after tax (PAT) increased to Rs 48 crore in FY23 compared to loss of Rs 28 crore in FY22. Overall, revenue and PAT increased by around 95 percent and 270 percent, respectively.
Established in 1987, Apeejay Surrendra Park Hotels operates in a hospitality segment under the brands ‘THE PARK,’ ‘THE PARK Collection,’ ‘Zone by The Park,’ ‘Zone Connect by The Park,’ and ‘Stop by Zone.’ With its retail brand ‘Flurys,’ the corporation is also engaged in the food and beverage retail market.
The company presently operates 27 hotels, which are divided into several categories like upper midscale, upscale, and luxury boutiques, in various Indian tier 1 and tier 2 cities. The firm also owns restaurants under Zen, Lotus, Aish, Saffron, Fire, Italia, 601, The Bridge, The Street, Verandah, Vista, Bamboo Bay, Monsoon, Mist, Love, and Bazaar are owned by the company.
