Shares of Apeejay Surrendra Park Hotels had a strong debut day on February 12, jumping 31 percent despite correction in the benchmark indices as well as broader markets.
The stock opened 20 percent higher at Rs 186 on the NSE, against issue price of Rs 155, and climbed further to hit an intraday high of Rs 223.20 in afternoon. Finally, the stock settled at Rs 203.55, up 31.32 percent with volume of 5.8 crore equity shares.
On the BSE, Park Hotels shares rallied 31.26 percent to end at Rs 203.45, with volume of 49.05 lakh equity shares.
However, the day was dismal for the equity markets, as there was sharp correction in the broader markets with the Nifty Midcap 100 and Smallcap 100 indices falling 2.5 percent and 4 percent, respectively, while the benchmark index Nifty 50 was down 0.8 percent to 21,616.
The strong IPO subscription numbers, healthy financial scorecard in the past year, and expected growth in travel & tourism sector may be some of key reasons behind the strong listing performance.
Also read: Apeejay Surrendra Park Hotels lists with 20% premium over IPO price: Here's what analysts say
The Kolkata-based hotel chain that operates hospitality business under several brands like THE PARK, THE PARK Collection, Zone by The Park, Zone Connect by The Park, and Stop by Zone has raised Rs 920 crore through its initial public offering. The price band for the offer was Rs 147-155 per share.
The public issue was subscribed 59.66 times during February 5-7.
Park Hotels has turned the corner for the year ended March FY23 with profit at Rs 48.06 crore against loss of Rs 28.2 crore in previous year. Revenue from operations during the same period surged 98.5 percent to Rs 506.1 crore.
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In the six months period ended September FY24, its profit grew by 24 percent on-year to Rs 22.95 crore and revenue increased by 17 percent to Rs 264.4 crore compared to year-ago period.
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