Apeejay Surrendra Park Hotels, a distinguished entity in India’s hospitality sector, is set to make a notable entrance into the public market with its initial public offering (IPO) scheduled from February 5 to February 7, 2024. The IPO is ambitiously pegged at ₹920 crores, consisting of a fresh equity issue of ₹600 crores and an offer for sale (OFS) amounting to ₹320 crores. While the exact price range remains under wraps, a price band of ₹147-155 has been set, inviting investors to engage with the company’s promising prospects.

The composition of the OFS is intriguing, with shares worth ₹296 crores being offloaded by the promoter, Apeejay Pvt Ltd, and additional shares being sold by RECP IV Park Hotel investors and co-investors. The company has thoughtfully allocated the IPO, reserving a substantial 75% for qualified institutional buyers, 15% for non-institutional investors, and 10% for the retail sector. Retail participants are encouraged to bid for at least 96 shares, necessitating an investment ranging from ₹14,112 to ₹14,880.

Renowned as the eighth-largest hotel chain in India, Apeejay Surrendra Park Hotels manages an impressive network of 27 hotels, alongside 80 restaurants, nightclubs, and bars as of March 2023. The company’s venture into the retail food and beverage market with ‘Flurys’ signifies its strategic diversification and commitment to revenue growth.

From a financial perspective, the company’s performance is commendable, with a revenue increase of 14% to ₹272 crores and a profit after tax boost of 24% to ₹22.9 crores for the six months concluding in September 2023. The capital raised from the IPO is principally designated for debt repayment and general corporate purposes, illustrating the company’s prudent financial stewardship.

Key contributors to this significant financial event include JM Financial, Axis Capital, and ICICI Securities as the book-running lead managers, and Link Intime India as the registrar, ensuring a smooth and structured IPO process.

Key Points to Note:

• IPO Schedule: February 5 to February 7, 2024.
• Price Band: ₹147-155.
• Company Portfolio: Eighth-largest hotel chain in India, with a broad array of hospitality and F&B offerings.
• Financial Highlights: 14% revenue growth and 24% increase in profit after tax for the six-month period ending September 2023.
• Strategic Use of Proceeds: Debt repayment and general corporate purposes.

In essence, Apeejay Surrendra Park Hotels is gearing up for a strategic IPO, positioning itself to attract a broad spectrum of investors and fortify its presence in the hospitality industry. With a strong operational base, a diversified portfolio, and a clear financial roadmap, the company is set to make a significant impact as it debuts in the public market.