Apeejay Surrendra Park’s Rs 920-crore issuance includes a new share sale of Rs 600 crore and an offer-for-sale (OFS) of Rs 320 crore.

Apeejay Surrendra Park Hotels’ Rs 920-crore initial public offering (IPO) goes live on Monday, February 5 and will be accessible for subscriptions till Wednesday, February 7. The business would issue its shares at a set price of Rs 147-155 each. Investors may bid for a minimum of 96 equity shares and multiples thereof.

Apeejay Surrendra Park Hotels, founded in 1987, operates in the hotel industry under the brand names ‘The Park’, ‘The Park Collection’, ‘Zone by The Park’, ‘Zone Connect by The Park’, and ‘Stop by Zone’. The company also operates in the retail food and beverage market under the name ‘Flurys’.

Apeejay Surrendra Park’s Rs 920-crore offering includes a fresh share sale of Rs 600 crore as well as an offer-for-sale (OFS) of Rs 320 crore in shares held by Apeejay Pvt Ltd, RECP IV Park Hotel Investors, and RECP IV Park Hotel Co-Investors. It has reserved Rs 10 crore worth of shares for the company’s qualified employees, who would receive a Rs 7 discount per share.

Apeejay Surrendra Park Hotels collected Rs 409.5 crore from anchor investors prior to its initial public offering by issuing 2,64,19,354 equity shares at a price of Rs 155 each.  The anchor book includes well-known investors such as Troo Capital, Carnelian Capital, Julius Baer India, Citigroup Global, Integrated Core Strategies, and Societe Generale, as well as several local mutual funds.

Apeejay Surrendra Park Hotels currently operates 27 hotels in cities such as New Delhi, Chennai, Hyderabad, Kolkata, Bangalore, Mumbai, Coimbatore, Indore, Goa, Jaipur, Jodhpur, Jammu, Navi Mumbai, Visakhapatnam, Port Blair, and Pathankot, totaling 2,111 rooms as of August 2023.

As of March 31, 2023, the firm operated 80 restaurants, nightclubs, and pubs, providing a diverse range of gastronomic experiences. The firm owns restaurants under the names Zen, Lotus, Aish, Saffron, Fire, Italia, 601, The Bridge, The Street, Verandah, Vista, Bamboo Bay, Monsoon, Mist, Love, and Bazaar.

Apeejay Surrendra Park Hotels declared a net profit of Rs 22.95 crore on a sales of Rs 272.31 crore for the fiscal year ending September 30, 2023. For the fiscal year ending March 31, 2023, the company’s net profit was Rs 48.06 crore and its revenue was Rs 524.43 crore.

The firm will offer 75% of the net offering to qualified institutional investors (QIBs), with non-institutional investors (NIIs) receiving 15% of the net offering. The remaining 10% of the net offer will be distributed to retail investors of the offering.