Apeejay Surrendra Park Hotels Ltd IPO: Issue Details, Open/Close Date | Research 360 by Motilal Oswal
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Apeejay Surrend.

CMP

185.93

+0.13 (0.07%)

  • DRHP
₹155

Offer Price

₹ 920.00 Cr

Issue Size

₹ 14,880

Min Investment

59.66x

Times Subscribed

96

Lot size

Time Line

  • 05
    Feb 2024
    Open
  • 07
    Feb 2024
    Close
  • 08
    Feb 2024
    Finalisation of Basis of Allotment
  • 09
    Feb 2024
    Initiation of Refunds
  • 09
    Feb 2024
    Transfer of Shares to Demat Account
  • 12
    Feb 2024
    Listing Date

Shares Offered

Number of Times Subscribed

Objects of the Offer

  • Continued focus on the development of existing land banks and strategic allocation of capital.

  • Optimise capital efficiency through the adoption of its asset light model with an optimal portfolio of owned, leased and managed hotels and to further strengthen, develop and expand its existing brands.

  • Improving operational efficiency to achieve superior performance.

  • Further develop and strengthen the `Flurys` brand in the retail food and beverage business through expansion plans.

Products & Services

  • The Company operates hospitality assets under its own brands, "THE PARK", "THE PARK Collection", "Zone by The Park", "Zone Connect by The Park" and "Stop by Zone".

Strengths

  • The Company has built successful hospitality brands through product innovation and service excellence to attract customer through a diversified and holistic offering.

  • A diversified Pan India portfolio of owned, leased and managed hotels that are strategically located across metros and emerging cities.

  • High occupancy rate and REVPAR with a strong financial and operational track record.

  • High F&B and Entertainment contributions which adds to stable and non-cyclical earnings while complementing the hotel business.

  • "Flurys" is an iconic brand with a successful and profitable track record of industry leading EBITDA margins.

Risks

  • The company is exposed to risks associated with the delay in development of its hotel properties and land banks. Any delay in the construction of new hotel buildings or expansion of its existing properties may have an adverse effect on the company`s business, results of operations, financial condition, and cash flows.

  • The company is exposed to risks associated with the construction and development of serviced apartments at EM Bypass, which is a one-off project of the Company and of which the Company has no prior experience.

  • The company wes not in compliance with certain covenants under certain of its financing agreements in the past and had delays in repayment of certain long-term rupee loans and working capital loans. In case of any breach of covenants or delay in repayment of facilities in the future, such non-compliance, if not waived, could adversely affect its business, results of operations, cash flows, and financial condition.

  • There are certain instances of delays in payment of statutory dues or non-payment of statutory dues on account of certain disputes. Any delay in payment of such statutory dues or non-payment of statutory dues in dispute may attract financial penalties from the respective government authorities and in turn may have an adverse impact on its financial condition and cash flows.

  • Majority portion of its hotel bookings (approximately 49% of the company total room bookings contributing about 49% of its total room revenue for Fiscal 2023) originate from online travel agents and intermediaries. In the event such online travel agents and intermediaries continue to gain market share compared to its direct booking channels, they may be able to negotiate higher commissions for services provided, or demand significant concessions or reduced room rates causing an adverse effect on its margins, business, and results of operations.

Company Promoters

Promoters Holding

Issue For IPO
47.24%
Pre Holding

47.24%

Post Holding

-

Top Promoters Holding

Financials

All values in Cr

Mar-2022 Mar-2023 Mar-2023 3-Yr trend
Revenue 255.02 (42.60%) 506.13 (98.50%) 8.65 (-)
Gross Profit 255.02 (42.60%) 506.13 (98.50%) 8.65 (-)
Net Income 255.02 (42.60%) 506.13 (98.50%) 8.65 (-)
Assets 255.02 (42.60%) 506.13 (98.50%) 8.65 (-)
Liabilities 255.02 (42.60%) 506.13 (98.50%) 8.65 (-)

Peers

Company Name Revenue (Cr) Net Profit (Cr) Assets (Cr) Liabilities (Cr) ROE EPS BVPS Current Ratio Debt to Assets
Apeejay Surrendra Park Hotels Ltd 506.13 48.10 1,180.38 624.69 8.65 2.75 31.82 0.67 0.52
Chalet Hotels Ltd 1,128.47 183.33 4,930.78 4,930.78 12.31 8.94 72.58 3.71 1.75
Lemon Tree Hotels Ltd 874.99 114.56 3,732.32 3,732.32 13.41 1.45 17.86 3.06 2.04
Indian Hotels Co Ltd 5,809.91 1,002.59 13,668.75 13,668.75 12.56 7.06 60.84 7.33 0.10
EIH Ltd 2,018.81 314.58 4,406.96 4,406.96 9.32 5.19 55.52 7.13 0.02
Samhi Hotels Ltd 738.57 -338.59 2,263.00 2,263.00 0.00 -43.93 -94.65 -14.96 -3.33

Book Running Managers

  • Axis Capital Ltd
  • ICICI Securities Ltd
  • JM Financial Ltd

Registrar & Transfer Agent

Link Intime India Pvt Ltd

C-101 247 Park,
L B S Marg,
Vikhroli West - Mumbai-400083
Phone : 91-22-49186000 Fax: 91-22-49186060

Company Contact Information

# 17 Park Street,
,
Kolkata - 700016
Phone : 91-33-2249 9000 Email : investorrelations@asphl.in www.theparkhotels.com

Offer Related Information

Initial public offering of 59,385,351* equity shares of face value of Re. 1 each ("Equity Shares") of Apeejay Surrendra Park Hotels Limited (The "Company" or the "Issuer") for cash at a price of Rs. 155^^ per equity share (including a share premium of Rs. 154 per equity share) aggregating to Rs. 920.00 crores (the "Offer"), comprising a fresh issue of 38,740,191* equity shares aggregating to Rs. 600.00 crores by the company (the "Fresh Issue") and an offer for sale of 20,645,160* equity... More

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