Apeejay Surrendra Park lists with 15% premium over IPO price

Apeejay Surrendra Park Hotels Ltd debuted 15 percent higher on February 12 after its public issue was subscribed 60 times last week.

The stock opened at Rs 187 from its issue price of Rs 155 a share. At 10.02am, the stock was trading at Rs 178.75 on BSE, up 15.3 percent from its issue price.

The Rs 930-crore IPO opened on February 5 and closed on 7th. The quota for Qualified Institutional Buyers (QIBs) garnered 75.14 times subscription while the portion for non-institutional investors subscribed 52.41 times. The category for retail individual investors (RIIs) received 30.35 times the subscription.

The IPO was a mix of fresh issuance of shares worth Rs 600 crore by the company, and an offer-for-sale (OFS) of shares worth Rs 320 crore by promoters and investors.

The company intends to utilise the majority of fresh issue proceeds of Rs 550 crore for repaying debts, besides general corporate purposes. As of January 2, it has an outstanding debt of Rs 582.28 crore on a consolidated basis.

The Kolkata-based firm successfully raised Rs 409.5 crore from various anchor investors on February 2. The anchor book saw participation from entities such as Citigroup Global, Carnelian Capital, Julius Baer India, Troo Capital, Societe Generale, ICICI Prudential Mutual Fund, 360 One Special Opportunities Fund, HDFC Life Insurance Company, Quant Mutual Fund, and Whiteoak Capital.

Apeejay Surrendra Park Hotels operates in the hospitality business under the brand names The Park, The Park Collection, Zone by The Park, Zone Connect by The Park and Stop by Zone. The company is also engaged in the business of the retail food and beverage industry through its retail brand Flurys.

The company reported a net profit of Rs 22.95 crore with a revenue of Rs 272.31 crore for the period ended on September 30, 2023. It had a bottomline of Rs 48.06 crore with a revenue of Rs 524.43 crore for the financial year ended on March 31, 2023. As of January 2, 2024, its total outstanding borrowings amounted to Rs 582.28 crore.

The book-running lead managers of the IPO are JM Financial, Axis Capital and ICICI Securities, while Link Intime India is the registrar. The company’s promoters are Karan Paul, Priya Paul, Apeejay Surrendra Trust and Great Eastern Stores.

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