Apeejay Surrendra Park Hotels IPO Sees 2.53 Times Subscription on Day 1

5 Feb 2024 , 09:56 PM

The initial public offering (IPO) of Apeejay Surrendra Park Hotels, with a size of Rs 920 crore, received a subscription of 2.49 times on the first day of bidding, February 5.

Here is a breakdown of the subscription:

– Retail investors bid 5.6 times their allotted shares.

– High net-worth individuals (HNI) subscribed 3.17 times.

– Qualified institutional buyers (QIB) subscribed 1.17 times their allotted quota of shares.

The IPO includes a fresh issue of shares worth Rs 600 crore and an offer-for-sale of shares worth Rs 320 crore. The price band for the offering is set at Rs 147-155 per share.

Apeejay Surrendra Park Hotels raised Rs 409.5 crore from anchor investors on February 2. Notable investors in the anchor round included Troo Capital, Carnelian Capital, Julius Baer India, Citigroup Global, Integrated Core Strategies, and Societe Generale.

Domestic investors, including Nippon Life India, ICICI Prudential Mutual Fund, 360 One Special Opportunities Fund, HDFC Life Insurance Company, Quant Mutual Fund, Whiteoak Capital, Mirae Asset, Bandhan Mutual Fund, Edelweiss Trusteeship, Kotak Mahindra Life Insurance Company, Bajaj Allianz Life Insurance, and SBI General Insurance, also participated in the anchor round.

The company plans to utilize Rs 550 crore to repay loans, with the remaining funds earmarked for general corporate purposes.

Apeejay Surrendra Park Hotels operates in the hospitality business under various brand names, including The Park, The Park Collection, Zone by The Park, Zone Connect by The Park, and Stop by Zone. The company is also involved in the retail food and beverage industry through its brand Flurys. JM Financial, ICICI Securities, and Axis Capital are the book-running lead managers for the issue, and Link Intime India is the registrar.