February 5, 2024 : The Apeejay Surrendra Park Hotels Limited is set to launch its Initial Public Offering (IPO) from February 5, 2024, to February 7, 2024. The IPO is a book-built issue with a total valuation of Rs 920.00 crores. This includes a fresh issue of Rs 600.00 crores and an offer for sale of Rs 320.00 crores.
Price Band and Lot Size
The price band for Apeejay Surrendra Park IPO is fixed between ₹147 to ₹155 per share. The minimum lot size for an application is 96 shares. Retail investors need a minimum investment of ₹14,880, while sNII and bNII have different lot size requirements and corresponding amounts.
Opening and Closing Dates
Subscription for the IPO begins on February 5, 2024, and concludes on February 7, 2024. The allotment is expected to be finalized on Thursday, February 8, 2024. The tentative listing date on both BSE and NSE is set for Monday, February 12, 2024.
Timeline Overview of Apeejay Surrendra Park Hotels Limited IPO
Here is a brief overview of the Apeejay Surrendra Park IPO timeline:
- IPO Open Date: Monday, February 5, 2024
- IPO Close Date: Wednesday, February 7, 2024
- Basis of Allotment: Thursday, February 8, 2024
- Initiation of Refunds: Friday, February 9, 2024
- Credit of Shares to Demat: Friday, February 9, 2024
- Listing Date: Monday, February 12, 2024
- Cut-off time for UPI mandate confirmation: 5 PM on February 7, 2024
Lead Managers and Registrar
The book running lead managers for Apeejay Surrendra Park IPO are Jm Financial Limited, ICICI Securities Limited, and Axis Capital Limited. Link Intime India Private Ltd serves as the registrar for the issue.
Reservation Details
The IPO reserves not less than 75% of the Net Issue for QIB, not more than 10% for retail investors, and not more than 15% for NII (HNI).
Lot Size Information
Investors can bid for a minimum of 96 shares and in multiples thereof. The table below illustrates the minimum and maximum investments for different categories.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 96 | ₹14,880 |
| Retail (Max) | 13 | 1248 | ₹193,440 |
| S-HNI (Min) | 14 | 1,344 | ₹208,320 |
| S-HNI (Max) | 67 | 6,432 | ₹996,960 |
| B-HNI (Min) | 68 | 6,528 | ₹1,011,840 |
Promoter Holding and Financial Snapshot
As of the pre-issue stage, the promoters hold 94.18% of Apeejay Surrendra Park Hotels Limited. The company’s revenue increased by 95.81%, and profit after tax (PAT) rose by 270.42% between the financial years ending with March 31, 2023, and March 31, 2022.
Key Performance Indicator
The market capitalization of Apeejay Surrendra Park IPO is Rs 3307 Cr. Key Performance Indicators include a Debt/Equity ratio of 0.99 and a Return on Net Worth (RoNW) at 9.03%.
Objects of the Issue
The company plans to use the Net Proceeds from the IPO for the repayment or prepayment of outstanding borrowings and general corporate purposes.
Conclusion and Recommendations
Analysts suggest that Apeejay Surrendra Park IPO, being a niche player with a leading position in its segment, is likely to attract attention post-listing. The majority of the primary issue will be utilized to reduce debts, leading to a strengthened bottom line with lower finance costs. Investors are encouraged to consider this IPO for medium to long-term rewards.
