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IPO ALERT: Apeejay Surrendra Park IPO opens TODAY

Apeejay Surrendra Park IPO
The rapid growth in India’s hospitality industry is expected at an overall supply CAGR of 8.6% from September 2023–FY 27, across all segments. Through FY 2027, 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. The Indian bakery  market  is expected to reach approximately INR 1,800-1,850 billion over next five years, by FY28, and the Indian café market is expected to grow at 19-21% CAGR during  Fiscal 2023-2028. It presents companies like Apeejay Surrendra Park Hotels  with various opportunities to grow its retail food and beverage business across different distribution channels.Incorporated in 1987, Apeejay Surrendra Park Hotels is engaged in the hospitality business operating under the brand names of ‘THE PARK’, ‘THE PARK Collection’, ‘Zone by The Park’, ‘Zone Connect by The Park’ and ‘Stop by Zone’. The company is also engaged in the business of retail food and beverage industry through its retail brand ‘Flurys. As of March 31, 2023, the company operates 80 restaurants, night clubs and bars, offering a wide selection of culinary experiences. The company currently operates 27 hotels, which are spread across different categories such as luxury boutique, upscale, and upper midscale. These hotels are present in various cities in India including Kolkata, New Delhi, Chennai, Hyderabad, Bangalore, Mumbai, Coimbatore, Indore, Goa, Jaipur, Jodhpur, Jammu, Navi Mumbai, Visakhapatnam, Port Blair, and Pathankot, offering a total of 2,111 rooms as of August 2023. The company owns restaurants under the brand names of Zen, Lotus, Aish, Saffron, Fire, Italia, 601, The Bridge, The Street, Verandah, Vista, Bamboo Bay, Monsoon, Mist, Love and Bazaar. Among hotel  chains  with  asset  ownership, the company ranks  as  the  eighth  largest  in  India  in  terms of  chain affiliated hotel rooms inventory as of September 30, 2023.

The company’s total income increased by 98.47% in FY23 to INR 5061.30 with its EBITDA reported at INR 1587.95 with its EBITDA margin at 25.25%.  The company has 25 operational hotels with ARR being reported at INR 6070.51 and average occupancy being 91.77%.

Objects of the issue:
1. Repayment of borrowings- INR 5500 million
2. General corporate purposes

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