Introduction

The Apeejay Surrendra Park Hotels IPO, set to unfold as a Rs 920-crore financial spectacle, combines a fresh issue and an offer-for-sale. As investors, gaining insights into key aspects before subscribing to this offering is paramount. Here are the critical details you need to be aware of:

1. IPO Dates

Mark your calendars! The IPO subscription window opens on February 5, welcoming investors into its fold until February 7, 2024.

2. Price Band

Delve into the specifics – the price band for this IPO is firmly set at Rs 147-155 per share.

3. Offer Details

Apeejay Surrendra Park Hotels endeavors to raise Rs 920 crore through a well-balanced combination of a Rs 600 crore fresh issue and a Rs 320 crore offer-for-sale. Notable selling shareholders encompass Apeejay Pvt Ltd, RECP IV Park Hotel Investors, and RECP IV Park Hotel Co-Investors.

4. Objectives of the Issue

Understanding the purpose – the primary goal is to utilize Rs 550 crore from the net proceeds to retire outstanding borrowings, with the residual funds allocated for general corporate purposes.

5. Lot Size

Dive into the bidding dynamics. Investors can bid for a minimum of 96 equity shares, subsequently increasing in multiples of 96. Retail investors, for instance, face a minimum investment of Rs 14,112, calculated at 96 (lot size) x 147 (lower price band).

6. Company Profile

Explore the entity behind the IPO. Apeejay Surrendra Park Hotels operates in the hospitality sector, boasting brands like The Park, The Park Collection, Zone by The Park, Zone Connect by The Park, and Stop by Zone. Additionally, it is active in the retail food and beverage industry through its brand Flurys.

7. Financials

Examine the fiscal health. As of September 30, 2023, the company reported a net profit of Rs 22.95 crore and a revenue of Rs 272.31 crore. For the fiscal year ending March 31, 2023, the bottom line stood at Rs 48.06 crore, with revenue touching Rs 524.43 crore. Total outstanding borrowings amounted to Rs 582.28 crore as of January 2, 2024.

8. BRLMs & Promoters

Identify key players. JM Financial, Axis Capital, and ICICI Securities serve as the book-running lead managers, while Link Intime India handles the registrar duties. The company’s promoters include Karan Paul, Priya Paul, Apeejay Surrendra Trust, and Great Eastern Stores.

9. Risks

Anticipate challenges. Factors include the dominance of online travel agents, the company’s outstanding borrowings, and liquidity ratios below 1 for specific periods.

10. Listing Date

Plan for the future. The basis of allotment concludes by February 8, shares reach demat accounts by February 9, and the stock lists on the NSE and BSE on February 12, according to the draft IPO papers.

In conclusion, armed with these insights, potential investors can make informed decisions regarding the Apeejay Surrendra Park Hotels IPO, navigating the financial landscape with confidence and precision.