Park Hotels raises ₹409 crore via anchor allotment ahead of IPO

Apeejay Surrendra Park Hotels, a leading hospitality chain that operates under popular brands like THE PARK and Zone, has successfully raised Rs 409.5 crore from anchor investors ahead of its upcoming initial public offering (IPO).

The IPO is scheduled to open on February 5th and close on February 7th and aims to raise Rs 920 crore, including a fresh issue of Rs 600 crore and an offer-for-sale (OFS) of Rs 320 crore by existing shareholders.

The strong anchor investor interest shown by marquee investors like Troo Capital, Carnelian Capital, and Julius Baer India, alongside domestic institutions like Nippon Life India, ICICI Prudential Mutual Fund, and HDFC Life Insurance Company, is a positive indicator of investor sentiment towards Park Hotels and its growth prospects.

A total of 2.64 crore equity shares were allotted to these investors at a price of Rs 155 per share, with over half of the allocation (1.32 crore shares) going to domestic mutual funds.

Park Hotels, ranked as India’s eighth largest chain in terms of affiliated hotel rooms, operates various brands catering to diverse segments. The price band for the IPO offer is set at Rs 147-155 per share.

JM Financial, Axis Capital, and ICICI Securities are the book running lead managers for the issue.

The fresh issue proceeds of Rs 550 crore will be used to repay debt, significantly reducing the debt burden of Park Hotels. This will help the company to strengthen its financial position and pursue growth opportunities in the highly competitive Indian hospitality market.

Conclusion

The recent developments at Apeejay Surrendra Park Hotels, the successful anchor book allotment and the upcoming IPO offer are significant achievements that bode well for the company and its investors. These events indicate that the market is confident in the company’s business strategy and future growth potential.

The anchor book allotment, which was oversubscribed by more than 50 times, reflects strong demand from institutional investors, who have shown a keen interest in the company’s prospects. The upcoming IPO offer is expected to raise significant funds for the company, which can be used to fuel further expansion and growth initiatives.

Overall, these developments are positive indicators for the future of Apeejay Surrendra Park Hotels and demonstrate the company’s ability to create value for its stakeholders.