Apeejay Surrendra Park Hotels Limited (ASPH), one of India’s leading hospitality chains, is set to launch its initial public offering (IPO) on February 5th, 2024. The IPO aims to raise ₹920 crore, providing an exciting opportunity for investors to buy into this well-established player in the Indian hospitality industry.
About Apeejay Surrendra Park Hotels
Founded in 1971, Apeejay Surrendra Park Hotels operates four brands: THE PARK, THE PARK Collection, Zone by The Park and Zone Connect by The Park. With a room inventory of over 45,800 rooms across India, it is the 8th largest hotel chain in the country.
The company has delivered robust financial growth in recent years. Its revenue rose 95.81% between FY 2020 and FY 2022, while profit after tax increased by a whopping 1,072% over the same period. For the six months ending September 2023, revenues were ₹272 crore, a 14% increase year-on-year.
Details of the ASPH IPO
Apeejay Surrendra Park Hotels Limited(ASPHL) IPO price band has been fixed in the range of ₹147 to ₹155 per equity share with a face value of ₹1 each. The IPO comprises a fresh issue of shares worth ₹600 crores and an offer for sale of ₹320 crores by promoters and investors.
| Event | Details |
| IPO Price Band | ₹147 to ₹155 per equity share |
| Subscription Dates | February 5 to February 7, 2024 |
| Allocation to Anchor Investors | February 2, 2024 |
| Floor Price | 147 times the face value of equity shares |
| Cap Price | 155 times the face value of equity shares |
| P/E Ratio (at floor price) | 53.45 times based on fiscal 2023 diluted EPS |
| P/E Ratio (at cap price) | 56.36 times based on fiscal 2023 diluted EPS |
| Lot Size | 96 equity shares, multiples of 96 thereafter |
| IPO Composition | Fresh issue: ₹600 crore; Offer for sale: ₹320 crore |
| IPO Opening Date | February 5, 2024 |
| IPO Closing Date | February 7, 2024 |
| IPO Size | ₹920 crore (₹600 crore fresh issue, ₹320 crore OFS) |
| Minimum Retail Investment | ₹14,880 (96 shares x ₹155 per share) |
Apeejay Surrendra Park Hotels’ IPO date of subscription is scheduled for Monday, February 5, and will close on Wednesday, February 7. The allocation to anchor investors for the Apeejay Surrendra Park Hotels IPO is scheduled to take place on Friday, February 2.
Allotment and listing date of ASPH IPO
| Allotment Date | February 8, 2024 |
| Refunds | February 9, 2024 |
| Credit of Shares to Demat Account | February 9, 2024 |
| Expected Listing Date | February 12, 2024 |
The Apeejay Surrendra Park Hotels IPO’s basis of allotment is anticipated for February 8, 2024, with refunds and credit of shares to the demat account expected on February 9, 2024. The IPO listing date is projected to be February 12, 2024.
ASPH IPO Strength:
Apeejay Surrendra Park Hotels is positioned favourably post-IPO, boasting strengths such as being India’s eighth-largest hotel chain by room inventory, with 45,800 rooms as of September 2023. Operating established brands like THE PARK and Zone by The Park, it saw substantial revenue growth (95.81%) and profit after tax surge (1,072.22%) from fiscal years 2020 to 2022. With plans to utilize IPO proceeds primarily for debt repayment, the company aims to enhance its financial standing and lower interest expenses.
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Revenue Growth Rate of ASPH
The exact revenue growth rate of Apeejay Surrendra Park Hotels over the last five years is unavailable. However, between fiscal years 2020 and 2022, its revenue surged by 95.81%. Additionally, for the six months ending September 2023, the company reported a revenue of Rs 272.31 crore, marking a 14% increase from the preceding year’s same period. To ascertain the precise five-year revenue growth rate, access to the company’s financial reports for those years is necessary.
Expected Valuation of ASPH After IPO
Based on the search results, the expected valuation of Apeejay Surrendra Park Hotels after the IPO is not available. However, the company aims to raise ₹920 crore through the IPO, which comprises a fresh issue of shares worth ₹600 crore and an offer for sale (OFS) of ₹320 crore from the promoter and investors. The IPO price band is set at ₹147 to ₹155 per equity share, and the minimum investment by retail investors would be ₹14,112. The company plans to use most of the fresh issue proceeds to repay its debt, which stood at ₹582.28 crore as of January 2, 2024.
How to Apply for ASPH IPO
To apply for Apeejay Surrendra Park Hotels IPO:
- Log in to your bank or brokerage account offering IPO services.
- Navigate to the IPO section and select Apeejay Surrendra Park Hotels IPO.
- Input the desired number of lots and price for the IPO.
- Provide necessary details including PAN number, bank account, and personal information.
- Submit the application and make payment via ASBA or UPI.
- Upon IPO closure, allotment will be finalized, and shares credited to your demat account if allotted.
- Apply through online platforms like Kotak Securities, 5paisa, Upstox, Angel One, etc.
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How to check ASPH IPO Allotment Status:
To check Apeejay Surrendra Park Hotels IPO allotment status:
- Visit the KFIN Technologies website.
- Select “Apeejay Surrendra Park Hotels” from the dropdown.
- Enter PAN, application number, or Demat.
- Complete captcha.
- Alternatively, check on the KFintech website.
- Also, monitor status in Demat or bank account.
- The allotment is expected on February 8, 2024.
- Listing date: February 12, 2024.
Reasons to Apply For ASPH IPO
- Strong growth momentum across financial parameters
- Leadership position with a pan-India presence
- Renowned and trusted brands
- Favorable industry dynamics
The Indian hospitality industry, especially luxury hotels, has rebounded strongly from the pandemic. This should support Apeejay’s growth plans.
Positive Aspects & Risks in ASPH IPO:
Positive Aspects:
- The luxury hospitality sector has seen robust post-pandemic recovery, potentially boosting investor confidence in Apeejay Surrendra Park Hotels IPO.
- Apeejay Surrendra Park Hotels is a well-established player with renowned brands like THE PARK, operating in the Indian hospitality industry.
- The company has reported impressive financials, with significant revenue growth and profit surge between fiscal years 2020 and 2022, alongside promising recent figures.
Risks:
- The COVID-19 pandemic’s lingering impact on hospitality poses a threat to sustained recovery, potentially affecting the company’s financial performance negatively.
- Apeejay Surrendra Park Hotels carries a substantial debt burden, reaching Rs 582.28 crore as of January 2, 2024. While debt repayment is planned from IPO proceeds, ongoing debt may strain financials.
- IPO markets can be volatile; hence, there’s a risk of underperformance, which could impact investor returns adversely.
Conclusion
The Apeejay Surrendra Park Hotels IPO provides an opportunity to invest in one of India’s leading hospitality chains. Strong industry tailwinds, renowned brands, and promising financials make this IPO compelling for investors with a medium to long-term perspective. However, risks related to debt levels and COVID-19 uncertainty remain, making it crucial to assess individual risk appetite before applying.