Park Hotel Files IPO Papers with SEBI, Plans to Raise Rs 1050 Crore

21 Aug 2023 , 11:23 AM

Prominent hotel chain, Park Hotel, has submitted its draft documents to the Securities and Exchange Board of India (Sebi) in order to raise funds through an Initial Public Offering (IPO). The IPO includes a fresh equity issuance worth Rs 650 crore and an Offer for Sale (OFS) worth Rs 400 crore.

As part of the OFS, the promoters Apeejay Surrendra Trust and Apeejay Pvt Ltd will sell shares valued at Rs 80 crore and Rs 296 crore respectively. Other shareholders participating in the OFS are RECP IV Park Hotel Investors and Co-Investors.

The proceeds from the new equity issuance will be utilized to partially or fully repay debt and for general corporate purposes. In the fiscal year ending March 2023, the company reported revenues of Rs 524 crore and a profit of Rs 48 crore.

Ranked as the eighth-largest hotel chain in India based on asset ownership, Park Hotel operates under various brands such as The Park, The Park Collection, and Zone by Park. The company has also ventured into the retail food and beverage sector through its brand ‘Flurys’.

Park Hotel is also considering a pre-IPO placement of up to Rs 130 crore, which would lead to a reduction in the size of the fresh issue, subject to consultation with the book running lead managers.

The IPO will follow the book-building process, with 75% of shares allocated proportionally to qualified institutional buyers, 15% reserved for non-institutional investors, and the remaining 10% for retail investors.

The book running lead managers for the issue are JM Financial, Axis Capital, and ICICI Securities, while Link Intime India serves as the registrar.