Apeejay Surrendra Park Hotels will open its initial public offering (IPO) for subscription on February 5 looking to raise Rs 920 crore.
The issue will close on February 7, while the anchor book will be opened for a day on February 2.
The IPO is a mix of fresh issue of shares worth Rs 600 crore and an offer-for-sale of shares worth Rs 320 crore by the promoter and investors.
Promoter Apeejay will offer shares worth Rs 296 crore for sale, while investors RECP IV Park Hotel Investors and RECP IV Park Hotel Co-Investors will offload Rs 23 crore and Rs 1 crore worth of shares.
Promoters hold a 94.18 percent stake in the hospitality chain and RECP IV Park Hotel Investors 5.53 percent.
The company, which operates brands such as THE PARK, THE PARK Collection, Zone by The Park, and Zone Connect by The Park, reduced the IPO size to Rs 920 crore from from Rs 1,050 crore.
The Park Hotels IPO papers were approved by the capital markets regulator SEBI on December 7. The preliminary papers were filed on August 19.
Also read: BLS E-Services raises Rs 126 crore from anchor investors ahead of IPO
Apeejay Surrendra Park Hotels, which ranks as the eighth largest in India in terms of chain-affiliated hotel rooms inventory, owned 45,800 rooms as of September 2023.
The company plans to use most Rs 550 crore of the fresh issue proceeds to repay debt. As of January 2, its had a debt of Rs 582.28 crore on consolidated basis.
Also read: BLS E-Services IPO opens on Jan 30: 10 things to know before you buy into Rs 310-cr issue
The Karan Paul and his sister Priya Paul-promoted company swung into black in the FY23, recording a net profit of Rs 48.06 crore against a loss of Rs 28.2 crore in the previous year. Revenue doubled to Rs 506.13 crore in during FY23 from the previous fiscal.
Profit in the six months period ended September FY24 grew 24 percent on-year to Rs 22.95 crore and revenue increased by 17 percent to Rs 264.4 crore.
JM Financial, Axis Capital, and ICICI Securities are the merchant bankers to the issue.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
