Apeejay Surrendra Park Hotels IPO Subscribed 2.52 Times On Day 1
The IPO was subscribed 2.52 times as of 5 p.m. on Monday.
Apeejay Surrendra Park Hotels Ltd. launched its initial public offer on Monday. The Rs 920-crore IPO consists of a fresh issue of Rs 600 crore and an offer for sale of Rs 320 crore. The company has raised Rs 409.5 crore from anchor investors.
The company allotted 2.64 crore shares at Rs 155 apiece to 37 anchor investors.
Nippon Life India (8.3%), HDFC Life Insurance Co. (6.84%), CLSA Global (6.84%), 360 One AMC (6.84%) and Franklin India (6.84%) are among the top investors in the pre-IPO round fundraising.
Eight domestic mutual funds have applied through a total of 21 schemes, the company said in an exchange filing on Friday. They have collectively netted 49.82% of the anchor portion of Rs 204 crore.
ICICI Prudential Mutual Fund, Edelweiss Mutual Fund, Whiteoak Capital, Quant Mutual Fund, Mirae Asset and Nippon Life India AMC are among the key investors in this category.
Issue Details
Issue opens: Feb. 5
Issue closes: Feb. 7
Total issue size: Rs 920 crore.
Fresh Issue size: Rs 600 crore
Offer for sale: Rs 320 crore
Price band: Rs 147-155 per share.
Lot size: 96 shares.
Face value: Re 1 per share.
Listing: BSE and NSE.
Business
The company is India's 8th largest hotel chains operator. ASPHL operates under five brands viz. THE Park, THE Park Collection, Zone by The Park, Zone Connect by The Park and Stop by Zone.
Apeejay Surrendra Park Hotels plans 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.
The company operate hotels under following four brands, namely “THE PARK, “THE PARK Collection”, “Zone by The Park”, “Zone Connect by The Park” and have recently launched the economy motel brand, “Stop by Zone”.
“THE PARK” brand is positioned as an upscale brand with a luxury boutique offering, with a brand philosophy that concentrates on design, style, and service to create differentiated and unique experiences at each hotel. •
“THE PARK Collection” brand encompasses small luxury properties located at selected travel destinations targeted at the luxury hotel category delivering personalized guest experiences.
“Zone by The Park” brand is positioned at the upper midscale level. It is designed for the price conscious and design conscious customers.
“Zone Connect by The Park” is an upper midscale brand that channels its spirit and design philosophy from Zone by The Park.
“Stop by Zone” is an economy motel brand which aims at providing convenient accommodation with easy access to parking, free Wi-Fi along with food services.
Subscription Status: Day 1
The IPO was subscribed 2.52 times as of 5 p.m. on Monday.
Institutional investors: 1.17 times
Non-institutional investors: 3.24 times
Retail investors: 5.70 times.
Employee Reserved: 0.75 times
