Apeejay Surrendra Park Hotels Limited, known as ‘The Park‘, is set to embark on a transformative journey with the initiation of its initial public offering (IPO) of Equity Shares. Scheduled to open on Monday, February 5th, 2024, the IPO marks a significant milestone for the renowned hospitality company.
During the IPO launch press conference, Priya Paul, Chairperson, Apeejay Surrendra Park Hotels announced that the company plans to have a total of 56 hotels across India by 2026. She also mentioned that they are in talks with partners to have presence in Ayodhya as well, which has emerged as a major spiritual tourism destination.
Park Hotels currently has 30 hotels across 20 Indian cities with a total of 2,298 keys. The company al has presence in F&B and Nightclubs space with 81 restaurants, nightclubs and bars spread across its hotels. It also operates F&B retain chain ‘Flurys’ in India.
The company is the eighth-largest among hotel chains with asset ownership in India. It operates hospitality assets under its own brands, The Park, The Park Collection, Zone by Park among others.
The IPO, with a total offer size aggregating up to INR 9,200 million [INR 920 crore], includes a fresh issue of Equity Shares amounting to INR 6,000 million [INR 600 crore] and an Offer for Sale worth INR 3,200 million [INR 320 crore] by Selling Shareholders. The bidding window will remain open until Wednesday, February 7th, 2024, with the Anchor Investor Bidding Date set for Friday, February 2nd, 2024.
In a significant move, the Company’s Board of Directors, in its meeting on January 25, 2024, sanctioned the allocation of 5.55 crore equity shares to 54 subscribers. Furthermore, the Board greenlit the allotment of 9.33 crore warrants, offering the option for equivalent equity share acquisition, to Elara India Opportunities Fund and Silver Stallion.
With a price band fixed at INR 147 to INR 155 per Equity Share, investors can participate by bidding for a minimum of 96 Equity Shares and in multiples of 96 Equity Shares thereafter. The net proceeds from the fresh issue of Equity Shares will primarily be utilised for repayment or prepayment of certain outstanding borrowings, along with allocation towards general corporate purposes.The Offer for Sale comprises shares from Apeejay Private Limited, the Promoter Group Selling Shareholder, RECP IV Park Hotel Investors Ltd, and RECP IV Park Hotel Co-Investors Ltd, demonstrating a strategic divestment by existing stakeholders.
JM Financial Limited, Axis Capital Limited, and ICICI Securities Limited have been appointed as the Book Running Lead Managers (BRLMs) to the Issue, underscoring the robust advisory framework supporting the IPO process.
The Equity Shares will be offered through the red herring prospectus dated January 29, 2024, filed with the Registrar of Companies, West Bengal at Kolkata, and are proposed to be listed on the BSE Limited and the National Stock Exchange of India Limited.
