THE Park Hotels IPO listing | Image:THE Park Hotels
THE Park Hotels IPO: Hospitality industry major Apeejay Surrendra Park Hotels Limited on Monday, February 12, 2024, made its debut into the stock market at a premium of nearly 21 per cent over the Initial Public Offering (IPO) price. The company was listed on the NSE at Rs 186 and touched a high of Rs 188.90 during early trade. The hospitality company’s IPO garnered significant attention, drawing robust subscription demand from various investor segments.
Analysts had anticipated a premium ranging between 20-25 per cent over the IPO price, with expectations hovering around Rs 185 to Rs 195 per share. However, the stock made a bullish debut, reflecting the optimistic momentum prevailing in the market. This surge in share price comes amidst favorable announcements in the Interim Budget aimed at bolstering the hospitality and tourism sectors, signaling positive prospects for the hotel industry in the foreseeable future.
“Park Hotels’ IPO received strong subscription demand from all sets of investors, based on these rationales and demand, we expect the stock to list around 20 per cent higher than its issue price of Rs 155 apiece,” commented Prashanth Tapse of Mehta Equities.
The IPO, which comprised a book-built issue of Rs 920 crore, witnessed a combination of a fresh issue of 3.87 crore shares amounting to Rs 600 crore and an offer for sale of 2.06 crore shares totaling Rs 320 crore. The bidding for Apeejay Surrendra Park IPO commenced on February 5, 2024, and concluded on February 7, 2024. The allotment was finalised on Thursday, February 8, 2024, with shares officially listing on both BSE and NSE on February 12, 2024.
Apeejay Surrendra Park IPO had set its price band at Rs 147 to Rs 155 per share, with a minimum lot size of 96 shares. Retail investors were required to invest a minimum of Rs 14,880, while other investor categories had varying lot sizes and investment requirements.
The issue also included a reservation of up to 675,675 shares for employees, offered at a discount of Rs 7 to the issue price. Jm Financial Limited, ICICI Securities Limited, and Axis Capital Limited served as the book-running lead managers of the IPO, with Link Intime India Private Ltd acting as the registrar for the issue.
Apeejay Surrendra Park Hotels Limited, incorporated in 1987, operates under renowned brand names such as “THE PARK”, “THE PARK Collection”, “Zone by The Park”, “Zone Connect by The Park”, and “Stop by Zone”. The company is also involved in the retail food and beverage industry through its brand ‘Flurys’.
As of March 31, 2023, the company operates 80 restaurants, nightclubs, and bars, offering diverse culinary experiences. Presently, it operates 27 hotels across different categories, with a total of 2,111 rooms as of August 2023, spanning various cities in India.
The company’s revenue surged by 95.81 per cent, while its profit after tax (PAT) witnessed a remarkable growth of 270.42 per cent between the financial years ending March 31, 2023, and March 31, 2022. The net proceeds from the IPO will be utilised for repayment or prepayment of outstanding borrowings, along with general corporate purposes, according to the company filing.
