Apeejay Surrendra Park Hotels has set a price band of Rs 147-155 for its public issue opening for subscription on February 5. The company aims to raise Rs 920 crore.
Investors can bid for a minimum of 96 shares and in multiples of 96 after that. Hence the minimum investment by retail investors would be Rs 14,112. At the upper end, the bidding amount will increase to Rs 14,880.
Up to 75 percent of the issue size has been reserved for qualified institutional buyers (QIB). The remaining 15 percent of the issue size is reserved for high net-worth individuals and 10 percent for retail investors.
The IPO will close on February 7, while the anchor book of the IPO will open for a day on February 2. JM Financial, Axis Capital, and ICICI Securities are the merchant bankers to the issue.
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The IPO is 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 promoter and investors.
Promoter Apeejay will be selling shares worth Rs 296 crore in the OFS, while investors RECP IV Park Hotel Investors, and RECP IV Park Hotel Co-Investors will be offloading Rs 23 crore and Rs 1 crore worth of shares.
Promoters hold 94.18 percent shareholding in the Park Hotels and the remaining 5.82 percent shares are held by the public including RECP IV Park Hotel Investors with 5.53 percent stake.
Also read: Apeejay Surrendra Park Hotels' Rs 920-crore IPO to open on February 5
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 this year, it has total outstanding debt of Rs 582.28 crore on a consolidated basis.
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