Suite Dreams to Stock Streams: Park Group announces its IPO

Bid /Offer will open on Monday, February 5, 2024 and close on Wednesday, February 7, 2024 – The Anchor Investor Bidding Date shall be Friday, February 2, 2024

• Price Band fixed at ₹ 147 to ₹ 155 per equity share of face value of ₹ 1 each
• Bids can be made for a minimum of 96 Equity Shares and in multiples of 96 Equity Shares thereafter;
• The Company proposes to utilise net proceeds from fresh issue of Equity Shares towards repayment/ prepayment, in full or in part of certain outstanding borrowings

BILKULONLINE

Ahmedabad, Feb 2: The Rs 920-crore public issue of Apeejay Surrendra Park Hotels (ASPHL) will open for subscription on February 5 as a mix of a fresh issue and an offer-for-sale. 1. IPO DatesThe IPO will open for subscription on February 5 and close on February 7, 2024.

The Apeejay Surrendra Park Hotels IPO on February 5 is a mix of a fresh issue and an offer for sale. It involves the issuance of new shares and the sale of existing shares by certain shareholders.

Art collector and design aficionado Padma Shri Priya Paul the Chairperson and Karan Paul, Chairman  of Apeejay Surrendra Park Hotels were in Ahmedabad on Friday to announce the details of their company’s forthcoming IPO.

Pioneer of creating India’s leading collection of contemporary luxury boutique hotels – The Park this group of Hospitality Company have both a four generations legacy and modern innovative additions and scale to add to the quality and number of its possessions.

The Park Hotels is a collection of contemporary luxury five-star boutique hotels in India belonging to the Apeejay Surrendra Group, headquartered in Kolkata, West Bengal, India. These hotels are located in Bangalore, Chennai, Hyderabad, Kolkata, Navi Mumbai, New Delhi, Visakhapatnam and Goa.

Apeejay Surrendra Park Hotels Ltd. has announced to open its ₹920-crore Initial Public Offering (IPO) on February 5, 2024 in the price band of ₹ 147 to ₹ 155 per equity share of face value of ₹ 1 each. The IPO will close on Wednesday, February 7, 2024. Bids can be made for a minimum of 96 equity shares and in multiples of 96 shares thereafter.

The IPO comprises fresh issue aggregating up to ₹600 crore and Offer for Sale aggregating up to ₹320 crore by selling shareholders.  The company proposes to utilise the net proceeds from fresh issue towards repayment/ prepayment, in full or in part of certain outstanding borrowings availed by it and balance amount towards general corporate purposes.

The offer for sale comprises sale of equity shares aggregating up to ₹ 296 crore by Apeejay Private Ltd., up to ₹23 crore by RECP IV Park Hotel Investors Ltd. and up to ₹1 crore by RECP IV Park Hotel Co-Investors Ltd.

Explaining the use of the proceeds of the IPO, Pauls informed that they plan to use Rs 550 crore from the net proceeds to repay certain outstanding borrowings availed by the company. The remaining funds will be used for general corporate purposes.

Managing Director of ASPHL, Vijay Dewan,  with over four decades of the industry experience is associated with the company since 1991. He explained the media in detail about the hotel industry arena within the country and its future. He emphasised that there is large gap existing between the demand and supply of the rooms in India. After Covid-19 he said the demand of travelling and hotel stay had phenomenally increased.

Atul Khosla, Senior Vice President and Chief Financial Officer of ASPL answered the financial queries of the media. Earlier, Arun Jani from Axis Capital introduced the company management.

ASPHL is the 8^th largest hotel chain amongst hotel chains with asset ownership in India. ASPHL operates under five brands – THE Park, THE Park Collection, Zone by The Park, Zone Connect by The Park and Stop by Zone.

With a long-standing expertise of over five decades in the hospitality business of owning and operating hotels, the group pioneered the concept of luxury boutique hotels in India under its brand, THE Park, extending it further through THE Park Collection, and in upper midscale categories with the brands Zone by The Park and Zone Connect by The Park, and the recently launched Stop by Zone. 

All based in prime downtown locations, there are presently located in Bangalore, Chennai, Goa, Hyderabad, Indore, Kolkata, Mumbai, Navi Mumbai, New Delhi and Visakhapatnam. The group will also be opening soon in Chettinad, Patiala, Pune, and Kolkata.

ASPHL’s first hotel was launched under the brand THE Park at the iconic Park Street in Kolkata.