The Park Hotel’s parent company Apeejay Surrendra Park Hotels IPO has launched its IPO; it will remain open for subscription from 5th February to 7th February 2024. The company ranks 8th amongst the largest asset-ownership hotel chains in terms of its chain-affiliated hotel room inventory.
The company is expected to get itself listed on exchanges like NSE and BSE on February 12, Monday, 2024. If you are looking forward to taking exposure in the hotels and hospitality sector, you should consider learning about the Park Hotels IPO. Scroll below to know more about the same.
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Apeejay Surrendra Park Hotels IPO Details
Listed below are the details of the Apeejay Surrendra Park Hotels Limited IPO.
| IPO Open Date | 5th February, 2024, Monday |
| IPO Close Date | 7th February, 2024, Wednesday |
| Issue Type | Book Built Issue IPO |
| Face Value | Re. 1 per share |
| Price Band | Rs. 147 to Rs. 155 per share |
| Minimum Lot Size | 96 equity shares |
| Total Issue Size | Amount aggregating up to Rs. 920 crore |
| Fresh Issue | Amount aggregating up to Rs. 600 crore |
| Offer for Sale | Amount aggregating up to Rs. 320 crore |
About the Company
Apeejay Surrendra Park Hotels Ltd is the eighth largest asset-ownership hotel chain in the country in terms of chain-affiliated hotel room inventory. It operates under multiple brand names which are “The Park”,“ Zone Connect by The Park”, “The Park Collection” and “Stop by Zone”. It has been in the hospitality business for over 55 years with its first hotel launched under the brand name of “The Park” at an iconic location of Park Street in Kolkata.
Moreover, the company has built a presence in the retail food and beverage industry under the brand name of “Flurys”. Its hotel portfolio has a presence across the country with a diversified customer base. Its food and beverage outlets integrated with its hotels offer a diverse source of revenue for this company.
According to Apeejay Surrendra’s RHP, it operates 81 restaurants, bars, night clubs along with a wide range of culinary outlets. Now, the company has decided to go public to raise capital for debt repayment and general corporate purposes. The Apeejay Surrendra Park Hotels IPO will be open from 5th Feb to 7th Feb 2024 at Rs. 147 to Rs. 155 a share.
Apeejay Surrendra Park Hotels IPO Timeline
Here is the timeline of Apeejay Surrendra Park Hotels Limited’s IPO.
| IPO Open Date | 5th February, 2024, Monday |
| IPO Close Date | 7th February, 2024, Wednesday |
| Cut-off Time for UPI Mandate confirmation | 5 PM, 7th February, 2024 |
| Basis of Allotment | 8th February, 2024, Thursday |
| Initiation of Refunds | 9th February, 2024, Friday |
| Credit of Shares to Demat Accounts | 9th February, 2024, Friday |
| Listing Date | 12th February, 2024, Monday |
Company Financials
Here is the financial summary of Apeejay Surrendra Park Hotels Ltd:
| Particulars | For the Financial Year Ending (Rs. In Millions) | ||
| March 31, 2023 | March 31, 2022 | March 31, 2021 | |
| Total Assets | 13,617.90 | 12,751.76 | 12,803.39 |
| Total Liabilities | 8,063.28 | 7,668.46 | 7,441.37 |
| Total Expenses | 4,589.63 | 3,096.19 | 2,620.24 |
| Total Revenue | 5,244.30 | 2,678.30 | 1,902.90 |
| Profit/Loss After Tax | 480.62 | (282.02) | (758.84) |
| EBITDA | 1,770.95 | 582.93 | 228.46 |
Strengths of the Company
Before you invest in the ongoing Park Hotels IPO, it is important to understand the core strengths of the company:
- Apeejay Surrendra Park Hotels Ltd has been incorporating techniques like product innovation and service excellence to attract customers through a diversified set of service offerings.
- It has a hotel chain of owned, managed and leased hotels strategically located across metro cities and emerging cities.
- Moreover, the company has a high RevPAR (revenue per available room) and occupancy rate along with a strong operational and financial track record.
- Park Hotels maintains a highly dedicated, experienced and qualified leadership team along with a higher standard of corporate governance. Each of the upper management such as the chairman, chairperson and managing director of the company has more than three decades of industry experience.
Risks Involved
Each and every business has risk factors associated with it. Therefore, it is important to know them before you invest in an IPO.
- Apeejay Surrendra Park Hotels Ltd is exposed to the risk associated with delays in the construction and development of hotel properties. Any kind of delays in the construction process and expansion projects of our existing properties may have an adverse impact on its business and cash flow.
- It is also exposed to the risk of non-payment of dues on account of certain disputes. Hence any such delays or non-payment of dues can result in a significant amount of financial penalties from the concerned authorities, which can hurt its overall business.
- A large chunk of its hotel booking is from online travel agents and intermediaries. In a scenario where online travel agents gain a considerable amount of market share compared to their direct booking channels, it will have negative effects. It may lead to higher commission negotiations from their end which will impact Appejay Surrendra’s bottom line.
Apeejay Surrendra Park Hotels Limited IPO: Subscription Details
The Park Hotels IPO has been fully subscribed in the NII and retail category by the end of day 1. Check below the subscription details:
| Category | Subscribed | Shares Offered | Shares Bid For |
| QIB | 0.01x | 1,85,71,428 | 1,27,104 |
| NII | 1.00x | 92,85,714 | 92,75,808 |
| bNII (bids above ₹10L) | 0.84x | 61,90,476 | 52,29,024 |
| sNII (bids below ₹10L) | 1.31x | 30,95,238 | 40,46,784 |
| Retail | 1.97x | 61,90,476 | 1,21,93,344 |
| Employee | 0.04x | 7,14,285 | 29,184 |
| Total | 0.62x | 3,47,61,903 | 2,16,25,440 |
Summary: Hopefully, by now you have got some clarity on the ongoing Apeejay Surrendra Park Hotels IPO. The Rs. 920 crore IPO consists of both a fresh issue component as well as an offer for sale component. The IPO offer will last till 7th February 2024. Hence, If you are planning to invest in this Apeejay Surrendra Park Hotels IPO, make sure to go through the RHP carefully to make an informed decision.
Frequently Asked Questions
The fresh issue size of the IPO is Rs. 6,000 million while the total issue size is Rs. 9,200 million approximately.
JM Financial Limited, ICICI Securities Limited, and Axis Capital Limited are book-running lead managers of the issue.
Link Intime India Private Limited is the registrar of the issue
Apeejay Private Ltd, RECP IV Park Hotel Co-Investors Ltd and RECP IV Park Hotel Investors Ltd are the selling shareholders of this IPO.
