Park Hotels IPO fully subscribed on Day 1 of offer

NewsDrum Desk
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New Delhi, Feb 5 (PTI) The initial public offer of Apeejay Surrendra Park Hotels, which runs hotels under the "The Park" brand, was fully subscribed on the first day of bidding on Monday and ended with 2.52 times subscription.

The Rs 920 crore IPO received bids for 8,75,33,280 shares against 3,47,61,903 shares on offer, as per NSE data.

The category for Retail Individual Investors (RIIs) received 5.70 times subscription while the quota for non-institutional investors fetched 3.24 times subscription. The portion meant for Qualified Institutional Buyers (QIBs) got subscribed 1.17 times.

The Initial Public Offer (IPO) has a fresh issue of up to Rs 600 crore and an offer for sale component of up to Rs 320 crore.

The IPO has a price range of Rs 147-155 a share.

Those offering shares in the OFS are Apeejay Surrendra Trust, Apeejay Pvt Ltd, RECP IV Park Hotel Investors Ltd, and RECP IV Park Co-Investors Ltd.

At present, promoters and promoter group members hold a 94.18 per cent stake in the company, and the two investors own 5.82 per cent shareholding in the firm.

Proceeds of the fresh issue would be utilised towards payment of debt and for general corporate purposes.

Apeejay Surrendra Park Hotels Ltd has mobilised Rs 409.5 crore from anchor investors.

The company operates hospitality assets under its brands, The Park, The Park Collection, Zone by The Park, Zone Connect by The Park, and Stop by Zone. It has five decades of experience in the hospitality business of owning and operating hotels, with the first hotel being launched under brand "The Park" at the iconic Park Street in Kolkata.

It has established a presence in the retail food and beverage industry through its retail brand 'Flurys'.

Also, it operates 81 restaurants, night clubs and bars as of September 30, 2023.

The company has presence in Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, and Delhi-NCR as well as in other major cities such as Coimbatore, Jaipur, Jodhpur, Jammu, Navi Mumbai, Raipur, and Visakhapatnam.

JM Financial, Axis Capital and ICICI Securities are the managers to the offer. PTI SUM SHW