APEEJAY SURRENDRA PARK HOTELS LIMITED FILES DRHP WITH SEBI FOR UP TO ₹ 1050 CRORE IPO
Apeejay Surrendra Park Hotels Limited is the 8th largest hotel chain amongst hotel chains with asset ownership in India (Source: Horwath HTL Report). It operate hospitality assets under its own brands, “THE PARK”, “THE PARK Collection”, “Zone by The Park”, “Zone Connect by The Park” and “Stop by Zone”
Apeejay Surrendra Park Hotels Limited has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator Securities and Exchange Board of India (“SEBI”).The Company plans to raise funds through offer of equity shares (face value ₹ 1 each) through initial public offerings aggregating up to ₹ 1050 Crore. The offer comprises of fresh issue of equity shares aggregating up to ₹ 650 crore (The “Fresh Issue”) and offer for sale by Selling Shareholders aggregating up to ₹ 400 crore (The “Offer for Sale”).
The company proposes to utilize net proceeds from fresh issue to (i) Repayment/ prepayment, in full or in part of certain outstanding borrowings availed by Company estimated to be ₹ 550 crore ; and (ii) balance amount towards general corporate purposes.
The Offer for Sale comprises of equity shares aggregating up to ₹ 800.00 million by Apeejay Surrendra Trust (The “promoter selling shareholder”), up to ₹ 2,960.00 million by Apeejay Private Limited (The “promoter group selling shareholder”), up to ₹ 230.00 million by RECP IV Park Hotel Investors Ltd and up to ₹ 10.00 million by RECP IV Park Hotel Co-Investors Ltd (together referred to as the “investor selling shareholders”)
The Equity Shares that will be offered through the Red Herring Prospectus are proposed to be listed on the BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”)
JM Financial Limited, Axis Capital Limited and ICICI Securities Limited are the Book Running Lead Managers to the issue.
Note to the Editor:
About The Company: Apeejay Surrendra Park Hotels Limited is 8th largest hotel chain amongst hotel chains with asset ownership in India (Source: Horwath HTL Report). It operate hospitality assets under its own brands, “THE PARK”, “THE PARK Collection”, “Zone by The Park”, “Zone Connect by The Park” and “Stop by Zone”
The company has a long-standing expertise of over five decades in the hospitality business of owning and operating hotels, with its first hotel being launched under its brand “THE PARK” at the iconic Park Street in Kolkata. They have established presence in the retail food and beverage industry through its retail brand ‘Flurys’. Apeejay Surrendra Park Hotels have pioneered the concept of luxury boutique hotels in India under its brand, “THE PARK”, extending it further through “THE PARK Collection” and in upper-midscale categories with its brands “Zone by The Park” and “Zone Connect by The Park”.
Its hotel portfolio has a PAN-India presence, and it continues to attract its customers with its diversified portfolio. Apeejay Surrendra Park Hotels categorize its hotel portfolio into two distinct hotels categories based on brand classification – upscale, and upper mid-scale. It operate hotels under following four brands, namely “THE PARK, “THE PARK Collection”, “Zone by The Park”, “Zone Connect by The Park” and have recently launched its economy motel brand, “Stop by Zone”:
- “THE PARK” brand is positioned as an upscale brand with a luxury boutique offering, with a brand philosophy that concentrates on design, style, and service to create differentiated and unique experiences at each hotel.
- “THE PARK Collection” brand encompasses small luxury properties located at selected travel destinations targeted at the luxury hotel category delivering personalized guest experiences.
- “Zone by The Park” brand is positioned at the upper midscale level. It is designed for the price conscious and design conscious customers.
- “Zone Connect by The Park” is an upper midscale brand that channels its spirit and design philosophy from Zone by The Park.
- “Stop by Zone” is an economy motel brand which aims at providing convenient accommodation with easy access to parking, free Wi-Fi along with food services.
The company believes that its extensive experience in developing a large hospitality business has resulted in them gaining a strong understanding of industry and market trends. Company’s vision of “Leadership through Differentiation” provides them with a competitive edge in its business, delivering superior operating performance. Apeejay Surrendra Park Hotels operate individual hotels with distinctive character and provide curated experiences to its guests. There hotels are differentiated through design and art, events, and entertainment and in providing unique, memorable, and immersive service experiences. Differentiation is also part of “Zone by the Park” brand which is being specially developed for India’s tier 2 and tier 3 cities through use of modern design and local influences.
As of March 31, 2023 Apeejay Surrendra Park Hotels operate 80 restaurants, night clubs and bars, offering a wide selection of culinary experiences. The night club and entertainment division contribute to its brand positioning and allows cross-selling opportunities. They have created award-winning brands such as Zen, Someplace Else, Tantra, Roxy, iBar, The Leather Bar, Pasha and Aqua.