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Apeejay Surrendra Park Hotels IPO
Apeejay Surrendra Park Hotels Limited
₹14,112 /96 sharesMinimum Investment
Apeejay Surrendra Park Hotels IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 5 Feb ‘24 - 7 Feb ‘24 | ₹14,112 | 96 | ₹147 - ₹155 |
| Issue Size | IPO Doc |
|---|---|
| 920.00Cr | RHP PDF |
Subscription rate
| Qualified Institutional Buyers | 75.14x |
| Non-Institutional Investor | 52.41x |
| Retail Individual Investor | 30.35x |
| Employees | 5.42x |
| Total | 59.66x |
About Apeejay Surrendra Park Hotels
Founded in
1987
Managing director
Mr. Vijay Dewan
Parent organisation
Apeejay Surrendra Park Hotels Limited
Strengths & Financials of Apeejay Surrendra Park Hotels
Strengths
Risks
Apeejay Surrendra Park Hotels holds the eighth position in India's chain-affiliated hotel room inventory, with approximately 1,300 rooms, constituting 2.80% of the total inventory as of September 30, 2023.
The company collaborates with renowned Indian and international designers, including Conran and Partners (UK), Skidmore, Owings & Merrill (New York), and Project Orange, to create distinctive spaces in its hotel properties. Notable projects include "Zone by The Park" and the music and entertainment club "SOME PLACE ELSE" in Mumbai.
The company had achieved a Compound Annual Growth Rate (CAGR) of 21.56% in its hotel portfolio expansion during the six months ended September 30, 2023, and the last three years.
"Zone by the Park" has expanded to 11 cities with 624 rooms, while "Zone Connect by The Park" is present in seven cities with 409 rooms.
Operating in the upscale to upper midscale category, Apeejay Surrendra Park Hotels manages 30 hotels with a pan-India presence, totalling 2,298 rooms. The company opened 13 managed and leased hotels in the last three years, adding 686 rooms to its portfolio.
The company has achieved occupancy levels of 92.76%, 91.50%, and 91.55% for owned hotels during the six months ended September 30, 2023, September 30, 2022, and the year ended March 31, 2023, respectively.
The company also offers banquet and conference spaces across its Indian hotel properties.
The retail food and beverage brand "Flurys" under Apeejay Surrendra Park Hotels operates 73 outlets in various formats, such as kiosks, cafes, and restaurants in India.
A significant portion of the company's room revenue, about 80% in 2023, comes from corporate accounts and leisure customers, split evenly at approximately 40%. Changes in traveller preferences, driven by factors like increased telepresence use, travel costs, and spending habits, could negatively impact room demand, affecting the business, operational results, financial condition, and cash flows.
The company's indebtedness, along with financing arrangement conditions and interest rate fluctuations, may limit its operational freedom and business growth. As of September 30, 2023, total borrowings were Rs. 597.09 crores.
The impact of the COVID-19 pandemic resulted in restated losses of Rs. 28.20 crore in 2022 and Rs. 75.88 crore in 2021. Future losses could negatively affect the company's financial health.
Some hotels are mortgaged with lenders, and failure to comply with mortgage terms or disputes over properties not in the company's name may impact business adversely.
The company heavily relies on the top five owned hotels, with THE PARK Kolkata contributing 21.75% to the Total Income in 2023. Any issues affecting these hotels or their regions may have negative consequences.
Liquidity ratios for the six months ended September 30, 2023, were less than 1, potentially impacting the company's ability to meet short-term financial obligations.
Out of the total outstanding borrowings of Rs. 597.08 crores as of September 30, 2023, Rs. 26.9 crores are loans that lenders can recall.
The company has contingent liabilities in its financial statements, which, if realized, could adversely affect its financial condition.
The majority of Flurys outlets (about 88% of the total) are situated in Kolkata and other parts of West Bengal. Any negative developments impacting these outlets or their regions may have adverse effects on the company's business, operations, cash flows, and financial condition.
A significant portion of the loans, amounting to Rs. 367.42 crores (constituting 61.67% of the total outstanding borrowings as of September 30, 2023), is intended to be repaid from Net Proceeds. These loans were obtained from ICICI Bank Limited, an affiliate of one of the Lead Managers to the Offer.
The hotel development plans include expanding existing hotels in Visakhapatnam and Navi Mumbai, and constructing a new one in Jaipur. There's also a plan to build a hotel and serviced apartments in Kolkata. Delays in these projects could impact the company's business.
The Company and its promoters are involved in certain legal proceedings. Any adverse outcome in any of these proceedings can adversely affect the company’s profitability and business.
Apeejay Surrendra Park Hotels Financials
*All values are in Rs. Cr
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Application Details of Apeejay Surrendra Park Hotels IPO
| Apply as | Price band | Apply Range |
|---|---|---|
| Regular | ₹147 - 155 | Upto ₹2 Lakh |
| Employee | ₹140 - 148 | Upto ₹2 Lakh |
| High Networth Individual | ₹147 - 155 | ₹2 - 5 Lakh |
For Apeejay Surrendra Park Hotels IPO, eligible investors can apply as Regular & Employee.