Stellar Start: Apeejay Surrendra Park Hotels lists at 21% premium at Rs 187 per share on the BSE

Apeejay Surrendra Park Hotels Limited is engaged in the hospitality business, operating under the brand names “THE PARK,” “THE PARK Collection,” “Zone by The Park,” “Zone Connect by The Park,” and “Stop by Zone, debuted on the Indian stock market today.

Upon its debut on the BSE, the stock opened at Rs 187 per share, reflecting an impressive 20.65% premium compared to the final issue price of Rs 155 per share. The market capitalisation of the company stands at Rs 3990 crore on the BSE. Meanwhile, on the NSE, the stock debuted at Rs 186 per share, representing an impressive premium of 20% compared to its final issue price.

IPO Proceeds

The Net Proceeds received from the fresh issue will be used to repay/prepay outstanding borrowings and for general corporate purposes.

Company profile

Apeejay Surrendra Park Hotels Limited is engaged in the hospitality business, operating under the brand names “THE PARK,” “THE PARK Collection,” “Zone by The Park,” “Zone Connect by The Park,” and “Stop by Zone.” The company is also involved in the retail food and beverage industry through its retail brand ‘Flurys.’

As per the latest update, the company operates 80 restaurants, nightclubs, and bars, offering a wide selection of culinary experiences.

The company operates 27 hotels across different categories, including luxury boutique, upscale, and upper midscale. These hotels are located in various cities in India, such as Kolkata, New Delhi, Chennai, Hyderabad, Bangalore, Mumbai, etc., offering a total of 2,111 rooms as of August 2023. The company owns restaurants under the brand names Zen, Lotus, Aish, Saffron, Fire, Italia, 601, The Bridge, The Street, Verandah, Vista, Bamboo Bay, Monsoon, Mist, Love, and Bazaar.

Subscription details:

On February 07, 2024, the final day of the IPO window, the IPO witnessed an impressive response, with a subscription rate of 62.91 times. The public issue received remarkable interest, with the retail category being subscribed 32 times, while the QIB and NII categories reached a subscription rate of 79.23 and 55.26 times respectively.

The IPO price band was between Rs 147 and Rs 155, with a face value of Rs 1 per share and a lot size of 96 shares. The total size of the company’s IPO was Rs 920 crore, and the final share issue price was fixed at Rs 155 each.

Financial Performance:

Conclusion: 

The key dilemma for investors lies in whether to hold onto their shares. Those who applied for the IPO solely intending to capitalise on listing gains have earned an impressive 21% return over its final issue price on the listing day itself. Investors who applied for the IPO purely for listing gains may consider closing their positions. Conversely, investors with a higher risk tolerance might opt to hold onto their shares for the medium to long term, as this strategy could potentially yield benefits over time.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.