Apeejay Surrendra Park Hotels are one of the prominent hospitality chains in India. They own and operate 22 hotels across 15 cities in the country. In total, their hotels have 1,937 rooms. Their pan India presence can be observed in cities like Kolkata, Hyderabad, Banglore, Chennai, Delhi-NCR, Mumbai and other popular cities including Jaipur, Goa, Coimbatore, Navi Mumbai, Jammu, Raipur and Visakhapatnam.
The company has exclusive experience in operating massive scale hospitality businesses, which further results in the formation of robust industry insight along with market trends. The company has a vision that depicts “Leadership through Differentiation”, which is why they facilitate strength through their business model. Popular with the name of “The Park”, this hospitality business chain extends exceptional operational efficiency.
Strength
Investors can certainly keep an eye on this IPO as Apeejay Surrendra Park Hotels are among the top 10 hotel businesses in India and they have accurately mastered the art of running a successful luxurious boutique hotel in the country. They are continuously offering an upper-midscale brand known as “Zone by The Park”. The company has been in business for more than 50 years and they had opened their first hotel in Kolkata with the brand name “The Park” at the popular Park Street.
The company has offered its hotels under three brand specialities known as “The Park”, Zone by The Park” and “The Park Collection”. Hospitality chain is a business operated under the leadership of Apeejay Surrendra Group. The group has extended its business across areas including real estate, hospitality, shipping, and into retail with education and a brand known as Oxford bookstores.
IPO Details
Apeejay Surrendra Park Hotels has submitted its draft with the market regulator SEBI in order to propose an IPO worth INR 1000 crores. It includes a fresh issue of shares worth INR 400 crores along with an offer-for-sale that will be INR 600 crores in value. The Offer for sale has been categorised into different sections depending upon the medium to raise the money. The promoter selling shareholder will raise INR 125.4 crores and Apeejay Pvt Ltd would raise INR 354.9 crores. Other than this, Apeejay House Pvt Ltd and investor selling shareholder would raise INR 84.7 sores and INR 34.9 crores respectively as suggested by DRHP.
The company aims to allocate the funds in order to repay and make advance payments for specific borrowings acquired. Other than this, the money will be used for general corporate reasons. Company’s representative states that the brand is planning to establish a 200 room hotel in the city of Pune, Maharashtra. They have already begun the construction for the same. The cost of the development of the hotel in Pune is expected to be 160 crores. Moreover, Apeejay is also planning to enhance the hotels at Vizag and Navi Mumbai with additions of 100 and 80 rooms respectively. The date for the IPO is not yet declared as approval from SEBI is still awaited. They are continuously growing towards becoming a leading hub for property management and they have recently taken over Danish Tavern, which was formerly owned by the West Bengal government.