Apeejay Surrendra Park Hotels IPO | Anchor investors pick Rs 409 crore worth shares

Apeejay Surrendra Park Hotels IPO opens on February 5

Institutional investors have picked Rs 409.5 crore worth of shares in hotels chain Apeejay Surrendra Park Hotels on February 2, a day before the IPO opening.

The public issue will open for subscription on February 5 and the last day for subscription will be February 7.

Marquee investors like Troo Capital, Carnelian Capital, Julius Baer India, Citigroup Global, Integrated Core Strategies, and Societe Generale invested in the company through anchor book.

Domestic investors including Nippon Life India, ICICI Prudential Mutual Fund, 360 One Special Opportunities Fund, HDFC Life Insurance Company, Quant Mutual Fund, Whiteoak Capital, Mirae Asset, Bandhan Mutual Fund, Edelweiss Trusteeship, Kotak Mahindra Life Insurance Company, Bajaj Allianz Life Insurance, and SBI General Insurance also participated in the Kolkata-based hotels chain.

Also read: Apeejay Surrendra Park Hotels IPO: 10 things to know before buying into Rs 920-cr issue

Park Hotels in its BSE filing said it has finalised the allocation of 2,64,19,354 equity shares to anchor investors, at a price of Rs 155 per share.

Out of the total allocation to anchor investors, "1,31,61,600 equity shares were allocated to 8 domestic mutual funds, which have applied through a total of 21 schemes," said the company.

Apeejay Surrendra Park Hotels intends to mobilise Rs 920 crore through the initial public offering which comprises a fresh issue of shares worth Rs 600 crore, and an offer-for-sale (OFS) of shares worth Rs 320 crore by existing shareholders.

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Promoter Apeejay, and investor RECP IV Park Hotel are the selling shareholders in the OFS.

The price band for the offer has been fixed at Rs 147-155 per share.

Park Hotels that ranked as the eighth largest in India in terms of chain affiliated hotel rooms inventory will spend Rs 550 crore of the total net fresh issue proceeds for repaying debts. As a result, the debt burden of the company is expected to reduce significantly post the issue.

The consolidated debt on its books stood at Rs 582.28 crore at the end of January 2, 2024.

The company operates hospitality assets under its own brands like THE PARK, THE PARK Collection, Zone by The Park, Zone Connect by The Park and Stop by Zone.

JM Financial, Axis Capital, and ICICI Securities are acting as the book running lead managers to the issue.