Apeejay Surrendra Park Hotels Ltd IPO
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Know More about Apeejay Surrendra Park Hotels Ltd
Overview of Apeejay Surrendra Park Hotels Ltd IPO
IPO Date
5-Feb-2024 to 7-Feb-2024
Face Value
₹1 per share
Price Band
147 to 155
Lot Size
96 Share
Issue Size
₹920 crores shares (aggregating up to ₹920 crores)
Listing At
BSE, NSE
Basis of Allotment
8-Feb-2024
Initiation of Refunds
9-Feb-2024
Credit of Shares to Demat
9-Feb-2024
Listing Date
12-Feb-2024
Cut off time for UPI Mandate
7-Feb-2024
Objective of Apeejay Surrendra Park Hotels Ltd IPO
The net proceeds from the IPO (worth ₹600 crore) will be utilized to repay/prepay, in full or in part of certain outstanding borrowings (₹550 crore) and the balance for any other general corporate purpose.
About Apeejay Surrendra Park Hotels Ltd IPO
Incorporated in 1987, Apeejay Surrendra Park Hotels is engaged in the business of hospitality services under their own brands, ‘The Park’, ‘The Park Collection’, ‘Zone by The Park’, ‘Zone Connect by The Park’ and ‘Stop by Zone’. The company launched its first hotel, ‘The Park’ at the iconic Park Street in Kolkata. The company is also engaged in the business of retail food and beverages industry through its retail brand, ‘Flurys’. As on the date of RHP, the company operates 30 hotels across luxury boutique, upscale and upper midscale categories, with pan-India presence in metros such as Kolkata, New Delhi, Chennai, Hyderabad, Bangalore, and Mumbai as well as in other major cities such as Coimbatore, Indore, Goa, Jaipur, Jodhpur, Jammu, Navi Mumbai, Visakhapatnam, Port Blair, Pathankot representing 2,298 rooms. As of 30th September 2023, the company also operates 81 restaurants, night clubs and bars, offering a wide culinary experience. It owns restaurants under brand names of Zen, Lotus, Aish, Saffron, Fire, Italia, 601, The Bridge, The Street, Verandah, Vista, Bamboo Bay, Monsoon, Mist, Love and Bazaar.
Apeejay Surrendra Park Hotels Ltd IPO Financials
Particulars (in Cr) | H1 FY24 | FY23 | FY22 | FY21 |
---|---|---|---|---|
Total Revenue Annual | 264 | 506 | 255 | 179 |
Operating Expenses Annual | 181 | 347 | 210 | 167 |
Operating Profit Annual | 83 | 159 | 45 | 11 |
Depreciation | 24 | 49 | 40 | 38 |
Interest Annual | 33 | 62 | 60 | 57 |
Tax Annual | 11 | 17 | -14 | -11 |
Net Profit Annual | 23 | 48 | -28 | -76 |
Total Share Holder Funds | 578 | 555 | 508 | 536 |
Fixed Asset Annual | 816 | 819 | 825 | 843 |
Total Non Current Asset | 1277 | 1269 | 1208 | 1222 |
Total Current Asset | 105 | 93 | 67 | 58 |
Total Asset Annual | 1383 | 1362 | 1275 | 1280 |
Book Value Per Share | ₹27.1 | ₹26.0 | ₹23.8 | ₹25.1 |
ROE | 4% | 9% | -6% | -14% |
ROCE | 5% | 10% | 1% | -2% |
Total Debt To Total Equity | 1.0 | 1.0 | 1.2 | 1.1 |
EBIDTA | 31% | 31% | 18% | 6% |
Cash From Operating | 69 | 176 | 58 | 27 |
Cash From Investing | -63 | -42 | -22 | -25 |
Cash From Finance | -6 | -126 | -37 | -5 |
Net Cash Flow | 0 | 8 | -1 | -4 |
Promoter's Holding
Total Share Capital
-
Offered to Public
-
Promoter’s Holding(Pre-Issue)
94.18%
Promoter’s Holding(Post-Issue)
68.13%
1. The company is focused on leveraging brand equity including through its asset-light model with minimal capital expenditure creating a diversified portfolio of hotels (owned, leased and managed).
2. Strong operating track record of high occupancy, competitive average room rates and RevPAR for all hotel properties. As on 30th September 2023, the company’s average occupancy level was 93% with RevPAR of ₹ 5,969 and average room revenue of ₹ 6,435.
3. Flurys is an iconic brand with a profitable track record and asset light business model. Flurys provides a diversified, resilient and a scalable business model for the company to leverage on. It has industry leading EBITDA margins of ~17% in the F&B segment.
The following points should be kept in mind:
1. The company is subject to seasonal variations that could result in fluctuations in results of operations and cash flows.
2. The hotel industry in India is intensely competitive. Inability to compete effectively may adversely affect the business, operations and cash flows.
3. The company is exposed to risks associated with the delay in development of hotel properties and land banks. Any delay in the construction of new hotel buildings or expansion of existing properties may have an adverse effect on the business, results of operations, financial condition, and cash flows.
4. Majority portion of the hotel bookings (approximately 49% of total room bookings contributing about 49% of the company’s total room revenue for FY 2023) originate from online travel agents and intermediaries. In the event such online travel agents and intermediaries continue to gain market share compared to their direct booking channels, they may be able to negotiate higher commissions for services provided, or demand significant concessions or reduced room rates causing an adverse effect on the company’s margins, business, and results of operations.
Apeejay Surrendra Park is launching a main-board IPO of equity shares with a face value of ₹1. The total value of the IPO is ₹920.00 Crores, with the shares priced between ₹147 to ₹155 per share. The minimum order quantity is 96 shares. The IPO will open on February 5, 2024, and will close on February 7, 2024. The registrar for the IPO is Link Intime India Private Ltd. The shares will be listed on BSE and NSE.
The Apeejay Surrendra Park IPO opens on February 5, 2024 and closes on February 7, 2024.
The Apeejay Surrendra Park IPO listing date is not yet announced. The tentative date of Apeejay Surrendra Park IPO listing is Monday, February 12, 2024.
Apeejay Surrendra Park IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges.
Apeejay Surrendra Park Hotels Limited is a fresh issue of ₹650 Crore and an offer for sale of ₹400 crore. It is a book-building issue.
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