Apeejay Surrendra Park Hotels Receives ₹409.5 Crore from Anchor Book

3 Feb 2024 , 03:30 PM

Institutional investors have shown strong interest in Apeejay Surrendra Park Hotels, subscribing to shares worth ₹409.5 Crore on February 2, a day before the opening of the Initial Public Offering (IPO).

The public issue is scheduled to open for subscription on February 5, with the subscription period closing on February 7. Notable institutional investors participating in the anchor book include Troo Capital, Carnelian Capital, Julius Baer India, Citigroup Global, Integrated Core Strategies, and Societe Generale.

Domestic investors, such as 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, have also joined the anchor book.

According to the BSE filing by Park Hotels, the company has finalized the allocation of 2,64,19,354 equity shares to anchor investors at a price of ₹155 per share. Out of this allocation, 1,31,61,600 equity shares were assigned to eight domestic mutual funds, representing a total of 21 schemes.

Apeejay Surrendra Park Hotels aims to raise ₹920 Crore through its IPO, consisting of a fresh issue of shares worth ₹600 Crore and an offer-for-sale (OFS) of shares worth ₹320 Crore by existing shareholders. Promoter Apeejay and investor RECP IV Park Hotel are the selling shareholders in the OFS.

The price band for the offer has been set at ₹147-155 per share. The company plans to utilize ₹550 Crore of the net fresh issue proceeds to repay debts, resulting in a significant reduction in its overall debt burden. As of January 2, 2024, the consolidated debt on the company’s books stood at ₹582.28 Crore.

Apeejay Surrendra Park Hotels operates hospitality assets under its own brands, including THE PARK, THE PARK Collection, Zone by The Park, Zone Connect by The Park, and Stop by Zone. JM Financial, Axis Capital, and ICICI Securities are the book running lead managers for the IPO.