Apeejay Surrendra Park Hotels' ₹920-Crore IPO to Open on February 5: Key Details Unveiled

Apeejay Surrendra Park Hotels is gearing up to launch its much-anticipated initial public offering (IPO) on February 5, with a fundraising target of ₹920 crore. The IPO subscription period will extend until February 7, while the anchor book is set to open on February 2.

Key Highlights of Apeejay Surrendra Park Hotels IPO:

1. Fundraising Objective: The IPO comprises a combination of fresh issue of shares amounting to ₹600 crore. Additionally, there is an offer-for-sale of shares worth ₹320 crore, with the promoter and investors participating. Apeejay, the promoter, is offering ₹296 crore worth of shares, while investors RECP IV Park Hotel Investors and RECP IV Park Hotel Co-Investors plan to offload ₹23 crore and ₹1 crore worth of shares, respectively.

2. Promoter Stake: Apeejay currently holds a substantial 94.18% stake in the hospitality chain, while RECP IV Park Hotel Investors have a 5.53% stake.

3. Company Overview: Apeejay Surrendra Park Hotels operates under various brand names, including THE PARK, THE PARK Collection, Zone by The Park, and Zone Connect by The Park. It ranks as the eighth-largest hotel chain in India, boasting 45,800 rooms as of September 2023.

4. Utilization of Funds: The majority of the fresh issue proceeds, amounting to ₹550 crore, are earmarked for debt repayment. As of January 2, the company carried a consolidated debt of ₹582.28 crore.

5. Merchant Bankers: Leading the IPO process are reputed merchant bankers, including JM Financial, Axis Capital, and ICICI Securities.

As Apeejay Surrendra Park Hotels embarks on this significant IPO journey, investors and industry enthusiasts await further developments, anticipating the impact on the Indian hospitality sector.