Apeejay Surrendra Park IPO: Check out 10 important things you should know from RHP before investing
The IPO price range of Apeejay Surrendra Park Hotels has been set in the range of ₹147 to ₹155 per share of par value of ₹1. IPO of Apeejay Surrendra Park Hotels increased ₹409 crore from anchor investors on Friday, February 2. The lot size of Apeejay Surrendra Park Hotels IPO is 96 shares and multiple of 96 shares thereafter.
Also Read: Apeejay Surrendra Park Hotels IPO Day 2: GMP, Rating, Subscription Status, Other Details. Buy or not?
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The IPO of Apeejay Surrendra Park Hotels has reserved not less than 75% of the shares of the public issue for Qualified Institutional Buyers (QIB), not more than 15% for Non-Institutional Institutional Investors (NII) and not more than 10% of the shares Offer is reserved for private investors.
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Apeejay Surrendra Park Hotels IPO details.
Tentatively, the share allotment base for the IPO of Apeejay Surrendra Park Hotels will be finalized on Thursday, February 8 and the company will issue refunds on Friday, February 9 while the shares will be deposited in the demat account of the company on the following day Reimbursement will be credited to allottees. The share price of Apeejay Surrendra Park Hotels is expected to list on the BSE and NSE on Monday, February 12.
Apeejay Surrendra Park's IPO, which is worth it ₹920 crore, consists of fresh issue of shares with a total value of up to ₹600 crore and Offer for Sale (OFS) total up to ₹320 crore.
The registrar for Apeejay Surrendra Park's IPO is Link Intime India Private Ltd and the underwriters are JM Financial Limited, ICICI Securities Limited and Axis Capital Limited.
Here are 10 important things from the Red Herring Prospectus (RHP) that investors may want to know before subscribing to the issue.
Also Read: Apeejay Surrendra Park Hotels IPO: 10 Key Risks Investors Should Consider Before Investing in Park IPO
Apeejay Surrendra Park Hotels IPO Promoter
The Promoters of the Company as on January 29, 2024, as disclosed in the Red Herring Prospectus, are Karan Paul, Priya Paul, Apeejay Surrendra Trust and Great Eastern Stores Private Limited. The Company's promoters own a total of 82,502,500 shares as of the date of this Red Herring Prospectus, representing 47.24% of the Company's issued, subscribed and paid-up share capital prior to the offering.
Apeejay Private Ltd, a promoter group that sells shareholders, would offload shares in value ₹296 crore, RECP IV Park Hotel Investors Ltd will sell shares worth ₹23 crore and RECP IV Park Hotel Co-Investors Ltd will offload shares worth 23 crore ₹1 Crore.
Apeejay Surrendra Park Hotels IPO colleagues
According to Red Herring Prospectus (RHP), the company's listed competitors are Chalet Hotels Limited (with a P/E ratio of 79.78), Lemon Tree Hotels Limited (with a P/E ratio of 92.34) and Indian Hotels Company Limited (with a P/E ratio of 65 ,67). ), EIH Limited (with P/E ratio of 56.59) and SAMHI Hotels Limited.
Apeejay Surrendra Park Business Model Details
The Company uses a variety of methods to operate its hotels, including direct ownership of hotel assets, long-term contractual leases of land and/or buildings, and operating and management agreements. It also uses its name for hotels built by other parties.
Apeejay Surrendra Park Hotel Business
The company operates hotels under the following four brands: “Zone by The Park”, “Zone Connect by The Park”, “THE PARK” and most recently “Stop by Zone”, a budget motel brand.
The company has nearly 55 years of experience in the hotel industry and owns and operates real estate. Based on brand classification, the company divides its hotel offerings into two separate categories: upper mid-range and upscale. The company has established a presence in the food and beverage retail sector with our retail brand “Flurys”.
Apeejay Surrendra Park Industry
In India, the hotel industry includes hotels that provide accommodation to both domestic and foreign visitors and business travelers, as well as restaurants, bars and banquet halls for events. There are five different segments for hotels in India: luxury and upscale, upper class, upper mid-range (up-mid), mid-range and economy.
In addition to hotels that better meet segment requirements, there will be entry-level hotels in each segment. Five-star, deluxe and luxury hotels form the “Luxury” and “Upgrade Upscale” categories. Upscale hotels, which are more affordable than first-class hotels, and upper mid-range hotels, which are often classified as 3-star hotels.
Also Read: Apeejay Surrendra Park Hotels IPO: Issue fully booked on first day; In retail, the NII sector is experiencing huge demand. Check GMP
Apeejay Surrendra Park Finance
Between the financial year ended March 31, 2023 and March 31, 2022, Apeejay Surrendra Park Hotels Limited recorded a revenue growth of 95.81% and a profit after tax (PAT) of 270.42%.
Operating metrics of Apeejay Surrendra Park Hotels
As of the date of this Red Herring prospectus, the Company operated 30 hotels in the upper midscale, luxury boutique, upscale and Bangalore categories. Its presence was felt across India, with 2,298 rooms in major cities like Coimbatore, Indore, Goa, Jaipur, Jodhpur, Jammu, Navi Mumbai, Visakhapatnam, Port Blair and Pathankot as well as in metropolitan cities like Kolkata, New Delhi, Chennai, Hyderabad, Bangalore and Mumbai.
Apeejay Surrendra Park Hotels upcoming developments
As of the Company's RHP date, its hotel development pipeline includes the development of its integrated land bank in Pune and the expansion of two of its currently owned hotels, which have a combined 380 rooms. The hotels are located in Visakhapatnam and Navi Mumbai. Further, as part of its future development plans, the Company intends to utilize its 3.36 hectare land for construction of a hotel and serviced apartments at Mouza Boinchtala on the Eastern Bypass of Kolkata and for construction of a new hotel in Jaipur.
Key Risks of Apeejay Surrendra Park Hotels IPO
Some of the main risks are as follows:
- The top five hotels account for a significant portion of its revenue (around 75% of total revenue in FY2023), with THE PARK Kolkata accounting for 21.75% of total revenue. Any adverse event affecting the hotels or the areas in which they are located could adversely affect their operations, financial condition, cash flows and the business.
- The Company is exposed to risks due to delays in the development of its properties and hotel facilities. The Company's business, financial condition, cash flows and results of operations could be adversely affected by delays in the development of new hotel buildings or the expansion of existing facilities.
Commitment of shares allocated to anchor investors
All shares allocated to the anchor investors under the anchor investor share will be blocked as follows: 50% of the shares allocated to the anchor investors from the allotment date will be blocked for 90 days, the remaining 50% will be blocked for 30 days.
Also Read: Apeejay Surrendra Park Hotels IPO: GMP, Price, More Details About Upcoming IPO
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Published: Feb 06, 2024 1:10 PM IST
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