Park Hotels secures Rs 409 crore investment from major investors ahead of IPO

Apeejay Surrendra Park Hotels Ltd, which operates hotels under the ‘The Park’ brand, has raised Rs 409.5 crore from major investors days ahead of its initial public offering. According to a notification uploaded on the BSE website on Friday, the company has decided to allocate Rs 264 crore to 37 funds at Rs 155 per share, which is also the upper end of the price band.

Societe Generale, Citigroup Mauritius Global Markets, Integrated Core Strategies (Asia) Pte Ltd, Bajaj Allianz Life Insurance Company, SBI General Insurance Company, Kotak Mahindra Life Insurance Company and CLSA Global Markets Pte Ltd are the major investors. Additionally, ICICI Prudential Mutual Fund (MF), Edelweiss Mutual Fund, Whiteoak Capital, Bandhan Mutual Fund and Quant Mutual Fund also participated in the anchor round.

The issue, priced in the range of Rs 147 to Rs 155 per share, will open for public subscription on February 5 and close on February 7. The IPO size of Rs 920 crore includes fresh issue of shares worth Rs 600 crore and sale of equity (OFS) by promoters and investor shareholders for Rs 320 crore.

The shares issued by OFS include Apeejay Surrendra Trust, Apeejay Pvt Ltd, RECP IV Park Hotel Investors Ltd and RECP IV Park Co-Investors Ltd. Currently, the promoters and promoter group members hold 94.18% stake in the company, while two investors own 5.82% stake in the company.

Proceeds from the new issue will be used to repay debt and general corporate purposes. The company operates hotel properties under the The Park, The Park Collection, Zone by The Park, Zone Connect by The Park and Stop by Zone brands. The company has fifty years of experience in owning and operating hotels, with the first hotel launched under the brand ‘The Park’ on Kolkata’s iconic Park Street.

It has established a presence in the retail food and beverage industry through its retail brand ‘Flurys’. As of September 30, 2023, the company also operated 81 restaurants, nightclubs and bars.

The company has operations in Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai and Delhi National Capital Region as well as Coimbatore, Jaipur, Jodhpur, Jammu, Navi Mumbai, Raipur and Visakhapatnam. There are offices in other major cities. JM Financial, Axis Capital and ICICI Securities are the lead managers for the issue.

(This article has not been edited by News18 staff and is published by PTI)