Apeejay Surrendra Park Hotels Shares End At 31% Premium Over IPO Price
The Rs 920-crore IPO was subscribed 59.66 times on its third and final day.
Shares of Apeejay Surrendra Park Hotels Ltd. ended at Rs 203.45 apiece, on the Bombay Stock Exchange, a premium of 31.6% over the IPO price of Rs 155 apiece.
On the National Stock Exchange, the shares ended at Rs 205 apiece, a premium of 32% over the IPO price.
The shares were listed at Rs 187 apiece on the BSE, a premium of 20.65% to over IPO price of Rs 155 apiece. On the NSE, the stock debuted at Rs 186, a 20% premium.
The Rs 920-crore IPO was subscribed 59.66 times by its third and final day. Bids were led by institutional investors (75.14 times), non-institutional investors (52.41 times), and retail investors (30.35 times).
"We are definitely going to expand the asset-light side of the model," Vijay Dewan, managing director, Apeejay Surrendra, Park Hotels said. "We will focus on all-sides of growth."
"The numbers are going to significantly improve and we will use the proceeds from the IPO to retire the debt," Dewan added. "We will be debt-free company, and will have a significant amount of cash flow."
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%) were among top investors in the pre-IPO round fundraise.
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 worth 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.
Business
The company is India's eighth largest hotel chains operator. ASPHL operates under five brands; 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 of the IPO to repay certain outstanding borrowings availed by the company. The remaining funds will be used for general corporate purposes.
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 personalised 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.
