Apeejay Surrendra Park Hotels Makes Strong Market Debut, Shares Surge 20% on Listing

12 Feb 2024 , 09:52 AM

Apeejay Surrendra Park Hotels saw a strong debut on the stock exchanges, with its shares listing at ₹186 on the NSE and ₹187 on the BSE. This marked a premium of 20% and 20.65%, respectively, over the issue price of ₹155 per share.

The company’s IPO, valued at ₹920 Crore, closed on February 7, with a mix of fresh issue and offer for sale (OFS) components. The public offer received overwhelming demand, with a subscription rate of 59.66 times. Qualified Institutional Buyers (QIBs) subscribed 75.14 times, non-institutional investors subscribed 52.41 times, and retail individual investors (RIIs) subscribed 30.35 times.

Out of the net proceeds, Apeejay Surrendra Park Hotels intends to utilize ₹550 Crore to repay outstanding borrowings, with the remaining funds allocated for general corporate purposes.

The company reported a net profit of ₹22.95 Crore and revenue of ₹272.31 Crore for the period ended September 30, 2023. For the financial year ended March 31, 2023, it achieved a net profit of ₹48.06 Crore and revenue of ₹524.43 Crore, a significant improvement from the previous year’s loss of ₹28.2 Crore. As of January 2, 2024, the company’s total outstanding borrowings stood at ₹582.28 Crore.