About Apeejay Surrendra Park Hotels Limited
Apeejay Surrendra Park Hotels Limited is launching its IPO. The offer opens for subscription on February 5, 2024, and will close on February 7, 2024.
What does Apeejay Surrendra Park Hotels Limited do?
The company is recognized as the eighth largest hotel chain in India, boasting around 1,300 rooms that account for 2.80% of the total chain-affiliated hotel room inventory. Operating under popular brands like “THE PARK,” “THE PARK Collection,” “Zone by The Park,” “Zone Connect by The Park,” and “Stop by Zone,” the company has amassed over 55 years of experience in the hospitality industry. It has successfully introduced the concept of luxury boutique hotels in India and offers a diverse portfolio of upscale and upper mid-scale hotels to cater to a wide range of customers.
Leveraging their extensive industry experience, the company has gained valuable insights into market trends and established a strong market position through differentiation. Their hotels stand out by offering unique and immersive experiences, with a focus on design, art, events, and entertainment. The “Zone by the Park” brand, specifically designed for tier 2 and tier 3 cities in India, showcases modern design elements infused with local influences.
The company’s food and beverage outlets play a significant role in generating revenue, with 81 restaurants, nightclubs, and bars contributing substantially to their overall income. This highlights the strength of their offerings in the food and beverage sector. Moreover, the non-cyclical earnings from this segment help diversify risks associated with the seasonal and cyclical nature of the hospitality industry. These earnings also complement the hotel operations by driving occupancy levels, average room rates (ARR), and revenue per available room (RevPAR). Notably, the company’s food and beverage contribution surpasses the industry average, providing resilience to their overall revenues.
What is the issue size of Apeejay Surrendra Park Hotels Limited IPO?
The total issue size of the IPO is Rs 920 crore, comprising both a fresh issue of Rs 600 crore and an offer for sale of Rs 320 crore.
Financials of Apeejay Surrendra Park Hotels Limited IPO (₹ crores)
| Financial Year | Total Assets | Total Revenue | Profit After Tax | EPS |
| March 31, 2021 | 1,280.34 | 190.29 | (75.88) | (4.34) |
| March 31, 2022 | 1,275.18 | 267.83 | (28.20) | (1.61) |
| March 31, 2023 | 1,361.79 | 524.43 | 48.06 | 2.75 |
| September 30, 2023 | 1,382.51 | 272.31 | 22.95 | 1.31 |
Risk factors to consider:
- Delays in hotel development and expansion projects may negatively impact business operations and financial conditions.
- Lack of prior experience in constructing and developing serviced apartments poses a risk for a specific project.
- Non-compliance with financing agreement covenants and loan repayment delays can adversely affect financial stability.
- Delayed or disputed payment of statutory dues may result in financial penalties and impact cash flows.
- Reliance on online travel agents and intermediaries for a significant portion of bookings exposes the company to potential higher commissions and demands for concessions, affecting margins and operations.
Schedule/Timeline of Apeejay Surrendra Park Hotels Limited IPO
| Issue Period | 5th February to 7th February 2024 |
| Deadline for accepting UPI mandate | Until 5 PM on the issue closing day |
| Finalization of Allotment | February 08, 2024 |
| Initiation of Refunds | February 09, 2024 |
| Credit of Shares | February 09, 2024 |
| Date of Listing | February 12, 2024 |
| Mandate end date | February 22, 2024 |
| Anchor Investors Lock-In End Date (50% of the investment) | March 11, 2024 |
| Anchor Investors Lock-In End Date (Remaining investment) | May 11, 2024 |
Note: Given that the above schedule is tentative, it should be noted that the anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares, and 90 days after for the remaining portion.
How to apply to the Apeejay Surrendra Park Hotels Limited IPO?
You can apply for the Apeejay Surrendra Park Hotels Limited IPO using any supported UPI app by following two steps:
- Enter your bid on Kite
- Accept the UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.
How to check the allotment status for the Apeejay Surrendra Park Hotels LimitedIPO?
You can check the allotment status for the Apeejay Surrendra Park Hotels Limited IPO on the website of the Registrar and Transfer agent.