Synopsis:
Investors are deliberating whether it is prudent to subscribe to the Apeejay Surrendra Park Hotels IPO, which begins today. The IPO's attractiveness and potential returns are under scrutiny as investors weigh various factors such as company performance, industry outlook, valuation, and market sentiment.
The Apeejay Surrendra Park Hotels IPO, valued at Rs 920 crore, is set to open for subscription from Monday, February 5, until Wednesday, February 7. The offering comprises a fresh share sale of Rs 600 crore and an offer-for-sale (OFS) of shares worth Rs 320 crore. The fixed price band for the shares is set at Rs 147-155 apiece, with a minimum bid requirement of 96 equity shares and subsequent multiples.
Established in 1987, Apeejay Surrendra Park Hotels operates under various brand names such as 'The Park,' 'The Park Collection,' 'Zone by The Park,' 'Zone Connect by The Park,' and 'Stop by Zone' in the hospitality sector. Additionally, the company is involved in the retail food and beverage industry through its brand 'Flurys.'
The IPO allocation includes shares reserved for eligible employees at a discounted rate of Rs 7 per share, totaling Rs 10 crore. Prior to the IPO, the company secured Rs 409.5 crore from anchor investors, including Troo Capital, Carnelian Capital, Julius Baer India, Citigroup Global, Integrated Core Strategies, Societe Generale, and domestic mutual funds.
As of August 2023, Apeejay Surrendra Park Hotels manages 27 hotels across different categories in cities like New Delhi, Chennai, Hyderabad, Kolkata, Bangalore, Mumbai, Coimbatore, Indore, Goa, Jaipur, Jodhpur, Jammu, Navi Mumbai, Visakhapatnam, Port Blair, and Pathankot, providing a total of 2,111 rooms. The company also operates 80 restaurants, nightclubs, and bars, offering diverse culinary experiences as of March 31, 2023.
In its financials, the company reported a net profit of Rs 22.95 crore and a revenue of Rs 272.31 crore for the period ending on September 30, 2023. For the fiscal year ending March 31, 2023, Apeejay Surrendra Park Hotels recorded a bottom line of Rs 48.06 crore and a revenue of Rs 524.43 crore.
The lead managers for the IPO are JM Financial, ICICI Securities, and Axis Capital, with Link Intime India serving as the registrar. The tentative listing date for the company's shares on both BSE and NSE is Monday, February 12. It is important to note that the information provided here is for informational purposes only and does not constitute investment advice. Readers are advised to consult with a qualified financial advisor before making any investment decisions.
