Park Hotels IPO: ASPHL planning to float Rs 1500 crore IPO in September

16 Feb 2023 , 03:30 AM

The Park Hotels promoters Apeejay Surrendra Park Hotels Ltd (ASPHL) is planning to launch its Rs 1500 crore initial public offer (IPO) by September 2023. As per the reports of the Economic Times, the company is planning to file revised DRHP in May.

The company had filed its DRHP in January 2020 to raise Rs 1,000 crore and received SEBI’s nod. However, it has postponed the IPO plans due to covid-19 pandemic first in March-April 2020 and again in April 2021.

As per company’s website shows it has 22 hotels covering 2,000 rooms currently and it will add another 2,000 keys to take the number of hotels to 40 in the next four years. It has 7 own properties, 13 under the management contract and the balance under the lease model -diversified across Bangalore, Chennai, Hyderabad, Kolkata, Navi Mumbai, New Delhi and Vishakhapatnam.

Currently, Apeejay promoters and group companies own more than 75% stake in the hotel chains, while its private equity investor, RECP IV Park Hotel Investors—a Mauritius-based investment vehicle owned by global investment bank Credit Suisse— which invested in the firm in 2007, holds about 8% stake.

The company also owns the famous Flurys brand that it acquired in 1965. It has 65 Flurys outlets across West Bengal, Mumbai and Delhi, and it plans to have 200 Flurys outlets across the country in the next two years.

Axis Bank, JM Financial and ICICI Securities are the lead managers for the IPO.