The initial public offering (IPO) of Apeejay Surrendra Park Hotels will open for subscription on February 5. The issue closes on February 7. The final allotment for the IPO will be done on February 8 and the company’s shares, to be listed on both the exchanges, will make their debut on February 12.

Here are 10 things to know about Park Hotels IPO before subscribing to the issue

1) What is the business overview of Park Hotels?
The company is eighth largest amongst hotel chains with asset ownership in India. It operates hospitality assets under its own brands, The Park, The Park Collection, Zone by Park among others. The company operates 80 restaurants, night clubs and bars, offering a wide selection of culinary experiences within its hotels, as of March 2023.

2) What is the industry overview of Park Hotels?
The rapid growth in India’s hospitality industry is expected at an overall supply CAGR of 8.6% from September 2023 – FY27, across all segments. Through FY27, about 25% of new supply will be in the luxury-upper upscale segment, 24% and 20% in the upscale and upper-midscale segments respectively and 31% in the midscale-economy segment. About 90% of total inventory is controlled by the top 25 chains, according to a report.

3) What is the size of Park Hotels IPO?

The issue comprises fresh equity issue of Rs 600 crore and an offer for sale (OFS) of Rs 320 crore.4) What is the price band for Park Hotels IPO?
BLS E-Services has fixed a price band of Rs 147-155 per share for its IPO. Investors can bid for 96 shares in 1 lot and in multiples thereafter.5) What is the structure of Park Hotels IPO?
About 75% of the offer is reserved for qualified institutional buyers (QIBs), 10% for retail investors and 15% for non-institutional investors.

6) How is the financial performance of Park Hotels?
For the six months ended September 2023, the company has reported revenue growth of 14% to Rs 272 crore. Profit after tax increased 24% to Rs 22.9 crore.

7) What are the objects of Park Hotels IPO?
Proceeds from the fresh issue are proposed to be utilised towards repayment of debt in part or full and other general corporate purposes.

8) What is the current GMP of Park Hotels?
According to market analysts, the current GMP of Park Hotels is Rs 70 in the unlisted market.

9) Who are the book running lead managers for Park Hotels IPO?
JM Financial, Axis Capital, ICICI Securities are acting as the book running lead managers to the issue, while Link Intime India is the registrar.

10) When is the share allotment and listing date of Park Hotels IPO?
The share allotment for the IPO will be finalised on February 8 and the listing date is fixed as February 12.

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