India-based hotel chain Park Hotel has submitted draft papers with the Securities and Exchange Board of India (SEBI), the capital markets regulator, for an initial public offering (IPO) to raise Rs10.50bn ($121.21m), according to The Economic Times.
This IPO consists of Rs6.50bn worth of fresh equity issue and Rs4bn offer for sale (OFS)
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By GlobalDataThe promoters Apeejay Surrendra Trust and Apeejay Private Limited will sell shares valued at Rs800m and Rs2.96bn, respectively, under the OFS.
Among the other shareholders selling include RECP IV Park Hotel investors and co-investors.
As a leading hotel chain in India and with over five decades of experience in the hospitality industry, Park Hotel runs various hotels under its brands, comprising the Park Collection, the Park and Zone by Park, as well as operates 27 hotels in the upper midscale and luxury boutique segments.
As of the end of March of this year, the company had 80 restaurants, bars and nightclubs operating within its hotels, providing various dining options.
In the fiscal year ending March 2023, the company generated Rs2.28bn in total income from the sale of food, beverages, wine and liquor.
It has also entered the retail food and beverage industry with a brand called Flurys.
Park Hotel may also look at a pre-IPO placement of up to Rs1.3bn which, if successful, will result in a smaller fresh issue size.
The fresh issue’s proceeds are expected to be used for general corporate purposes and to make a partial or complete debt repayment.
The company recorded revenues of Rs5.24bn and a profit of Rs480m for the year that ended March 2023.
Park Hotel during the same period achieved a revenue per available room of roughly Rs5.57bn, with an occupancy rate of 91.7%.
The offer is made via a book-building process under which 75% will be earmarked on a proportionate basis for qualified institutional buyers, 15% for non-institutional investors and the remaining 10% for retail investors.
AXIS Capital, ICICI Securities and JM Financial are the issue’s book-running lead managers, while Link Intime India is serving as the registrar.
