APJ Surendra Park Hotels IPO: Open on February 5, price band is ‘so much’
APJ Surendra Park Hotels plans to raise Rs 920 crore through IPO. APJ Surendra Park Hotels was started in 1987.
Mumbai:
The IPO of APJ Surendra Park Hotels will open on February 5. The company has fixed a price band of Rs 147-155 per share for this. APJ Surendra Park Hotels plans to raise Rs 920 crore through IPO. APJ Surendra Park Hotels was started in 1987.
Offered for sale
600 crore worth of new shares will be issued under the IPO. Shares worth Rs 320 crore will be sold in the offer for sale. Investments in the IPO can be made till February 7. Anchor investors will be able to bid on February 2.
Lat-size
Investors can bid for 96 shares in the IPO. The promoters will sell shares worth Rs 296 crore in the OFS. In addition, RECP IV Park Hotel Investor and RECP IV Park Hotel Co-Investor shares worth Rs 23 crore and Rs 1 crore respectively will be put up for sale by investors
Listing of Shares
75 percent of the shares in the IPO are reserved for qualified institutional buyers (QIB), 15 percent for high-net-worth individuals, and 10 percent for retail investors. JM Financial, Axis Capital, and ICICI Securities are merchant bankers. The registrar is Link Intime India Private Limited. The shares will be listed on BSE, and NSE on February 12.
Debt against the company
The promoters of APJ Surendra Park Hotels include Karan Paul, Priya Paul, APJ Surendra Trust, and Great Eastern Stores Pvt. including Ltd. Presently, the promoters hold a 94.18 percent stake in the hotels. The remaining 5.82 percent of shares are held by the public. RECP IV Park Hotel Investors holds 5.53 percent of the public shareholding. The company will use the proceeds from the issue of new shares in the IPO to repay debt and for general corporate purposes. Park Hotels had a total arrears of Rs 582.28 crore as of January 2, 2024.
Rashi Peripherals IPO:
The IPO of Rashi Peripherals will open on February 7. The company intends to raise 600 crores through this issue. Investors will have an opportunity to invest in it till February 9. At the same time, the IPO will open to anchor investors on February 6.
600 crore fresh equity shares will be issued under Rashi Peripherals’ IPO. At the same time, there will be no sale under Offer for Sale (OFS). Earlier the IPO size was 750 crores, which has now been reduced to 600 crores after raising funds in the pre-IPO placement.
Colorado Venture Partners Fund-III-Beta and Madhuri Madhusudan Kela invested Rs 100 crore and Rs 50 crore respectively in the company through Pre Private Placement on 17 January 2024. Colorado and Kela are the only public shareholders with a 10.35 percent stake in the company, while promoters hold the remaining 89.65 percent.
326 crores from this IPO will be used for debt repayment and 220 crores for working capital requirements. The company’s total outstanding debt as of November 2023 is Rs 1,569.4 crore. JM Financial and ICICI Securities are the book-running lead managers for the issue.