Park Hotels owner submits IPO Draft of Rs 1,050 cr to SEBI

Vaibhav Jewellers sets IPO price at Rs 204-215 per share, raising Rs 270 Cr

Park Hotels owner submits IPO Draft of Rs 1,050 cr to SEBI

Apeejay Surrendra Park Hotels Ltd, renowned for its upscale hotels under the brand name “The Park,” has taken a significant step towards expansion and financial growth. The company recently submitted preliminary documents to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) aimed at raising Rs 1,050 crore. This strategic move includes a fresh issuance of equity shares valued at Rs 650 crore, alongside an offer for sale (OFS) of equity shares amounting to Rs 400 crore by both promoters and investor shareholders. These details were unveiled in the draft red herring prospectus (DRHP) filed on a recent Saturday.

Among the entities participating in the offer for sale (OFS) are Apeejay Surrendra Trust, Apeejay Pvt Ltd, RECP IV Park Hotel Investors Ltd, and RECP IV Park Co-Investors Ltd. At present, the promoters and members of the promoter group collectively own 94.18% of the company’s stake, while the remaining 5.82% is held by the two aforementioned investors.

The proceeds from the fresh equity issuance will play a pivotal role in the company’s strategy. They will be channeled towards reducing existing debt and supporting general corporate activities. Apeejay Surrendra Park Hotels Ltd is recognized for its various hospitality assets operating under brands such as “The Park,” “The Park Collection,” “Zone by The Park,” “Zone Connect by The Park,” and “Stop by Zone.” Additionally, the company has made a notable mark in the retail food and beverage sector through its retail brand, “Flurys.”

The company boasts an impressive five decades of experience in the hospitality sector, marked by the ownership and operation of hotels. The journey began with the launch of the first “The Park” hotel on the iconic Park Street in Kolkata. Today, the company’s influence extends to several prominent Indian cities including Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, Delhi-NCR, as well as other significant locales like Coimbatore, Jaipur, Jodhpur, Jammu, Navi Mumbai, Raipur, and Visakhapatnam.

Managing the upcoming IPO are esteemed financial institutions, namely JM Financial, Axis Capital, and ICICI Securities, who are the appointed book-running lead managers overseeing the issue. Notably, this isn’t the first time Apeejay Surrendra Park Hotels Ltd has embarked on this path. The company initiated the process with draft papers for an IPO back in December 2019, receiving regulatory approval. However, circumstances led to the postponement of the launch at that time. The current move reflects the company’s renewed commitment to its growth trajectory through the proposed IPO.

About Park Hotels:

The Park Hotels represents a series of modern and luxurious boutique hotels in India, affiliated with the Apeejay Surrendra Group, with its headquarters situated in Kolkata, West Bengal, India. These exquisite hotels can be found in various Indian cities including Bangalore, Chennai, Hyderabad, Kolkata, Navi Mumbai, New Delhi, Visakhapatnam, and Goa.

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