Apeejay Surrendra Park Hotels, renowned for its "The Park" brand of hotels, witnessed a robust response to its Initial Public Offering (IPO) as it was fully subscribed on the first day of bidding, ending with a subscription of 2.52 times.
According to data from the National Stock Exchange (NSE), the Rs 920 crore IPO garnered bids for 8,75,33,280 shares against the 3,47,61,903 shares on offer. Among the investor categories, Retail Individual Investors (RIIs) subscribed 5.70 times, while non-institutional investors showed significant interest with a subscription of 3.24 times. The portion allocated for Qualified Institutional Buyers (QIBs) saw a subscription of 1.17 times.
The IPO comprises a fresh issue of up to Rs 600 crore and an offer for sale component of up to Rs 320 crore, with a price range of Rs 147-155 per share. The Offer for Sale (OFS) includes shares offered by Apeejay Surrendra Trust, Apeejay Pvt Ltd, RECP IV Park Hotel Investors Ltd, and RECP IV Park Co-Investors Ltd.
Currently, promoters and promoter group members hold a 94.18 per cent stake in the company, while the remaining 5.82 per cent is owned by the two investors. The proceeds from the fresh issue will be allocated towards debt repayment and general corporate purposes.
Prior to the IPO, Apeejay Surrendra Park Hotels raised Rs 409.5 crore from anchor investors.
The company operates hospitality assets under various brands such as The Park, The Park Collection, Zone by The Park, Zone Connect by The Park, and Stop by Zone. With a five-decade legacy in the hospitality industry, the company launched its first hotel under "The Park" brand on the iconic Park Street in Kolkata.
Apart from its hotel ventures, the company has a significant presence in the retail food and beverage industry through its brand 'Flurys'. Additionally, it operates 81 restaurants, nightclubs, and bars as of September 30, 2023.
Apeejay Surrendra Park Hotels has established its footprint in major cities including Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, and Delhi-NCR, along with presence in Coimbatore, Jaipur, Jodhpur, Jammu, Navi Mumbai, Raipur, and Visakhapatnam. JM Financial, Axis Capital, and ICICI Securities are managing the offer.