Apeejay Surrendra Park Hotels IPO last date to apply: GMP drops, check issue details, review, more. Apply or not? | Mint
Active Stocks
Tue Feb 20 2024 15:54:00
  1. Power Grid Corporation Of India share price
  2. 287.95 4.16%
  1. HDFC Bank share price
  2. 1,453.75 2.59%
  1. Tata Steel share price
  2. 141.05 -0.60%
  1. NTPC share price
  2. 345.65 2.01%
  1. ITC share price
  2. 406.05 -0.77%
Business News/ Markets / Ipo/  Apeejay Surrendra Park Hotels IPO last date to apply: GMP drops, check issue details, review, more. Apply or not?
BackBack

Apeejay Surrendra Park Hotels IPO last date to apply: GMP drops, check issue details, review, more. Apply or not?

Apeejay Surrendra Park Hotels IPO worth ₹920 crore consists of fresh issue of equity shares aggregating up to ₹600 crore and offer-for-sale aggregating up to ₹320 crore. Grey market premium for the Apeejay Surrendra Park Hotels IPO is +34, indicating a premium of ₹34 in the grey market.

Apeejay Surrendra Park Hotels IPO has opened for subscription on Monday, February 5, and will close on Wednesday, February 7. (https://www.theparkhotels.com/)Premium
Apeejay Surrendra Park Hotels IPO has opened for subscription on Monday, February 5, and will close on Wednesday, February 7. (https://www.theparkhotels.com/)

Apeejay Surrendra Park Hotels IPO opened for subscription on Monday, February 5, and will close today (Wednesday, February 7). During the first two days of subscription, retail and non-institutional investors responded enthusiastically to the Park Hotel IPO. As perBSE data, the Park IPO subscription status was 5.82 times on day two, while Apeejay Surrendra Park Hotels IPO subscription status was 2.53 times on day one.

Also Read: Apeejay Surrendra Park Hotels IPO day 2: GMP, review, subscription status, other details. Buy or not?

Apeejay Surrendra Park Hotels IPO price band has been fixed in the range of 147 to 155 per equity share of the face value of 1 each. Apeejay Surrendra Park Hotels IPO raised 409 crore from anchor investors on Friday, February 2. The Apeejay Surrendra Park Hotels IPO lot size is 96 equity shares and in multiples of 96 equity shares thereafter.

"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!

The Park Hotels IPO has reserved not less than 75% of the shares in the public issue for qualified institutional buyers (QIB), not more than 15% for non-institutional Institutional Investors (NII), and not more than 10% of the offer is reserved for retail investors.

Also Read: Apeejay Surrendra Park Hotels IPO continues to see robust demand from retail, NIIs on day 2; GMP drops

Tentatively, Apeejay Surrendra Park Hotels IPO basis of allotment of shares will be finalised on Thursday, February 8, and the company will initiate refunds on Friday, February 9, while the shares will be credited to the demat account of allottees on the same day following refund. Apeejay Surrendra Park Hotels share price is likely to be listed on BSE and NSE on Monday, February 12.

Apeejay Surrendra Park Hotels IPO details.
View Full Image
Apeejay Surrendra Park Hotels IPO details.

Apeejay Surrendra Park Hotels IPO details

The Park Hotels IPO, which is worth 920 crore, consists of fresh issue of equity shares aggregating up to 600 crore and offer-for-sale (OFS) aggregating up to 320 crore.

The company plans to use the net proceeds to fund general corporate operations as well as the return or prepayment, in full or in part, of any outstanding borrowings that the company has taken out.

Also Read: Apeejay Surrendra Park Hotels IPO: 10 key risks investors should consider before investing in Park IPO

Apeejay Private Ltd, promoter group selling shareholder, would be offloading shares worth 296 crore, RECP IV Park Hotel Investors Ltd will be selling shares worth 23 crore, and RECP IV Park Hotel Co-Investors Lts will be offloading shares worth 1 crore.

The registrar for the Apeejay Surrendra Park IPO is Link Intime India Private Ltd, and the book running lead managers are JM Financial Limited, ICICI Securities Limited, and Axis Capital Limited.

Apeejay Surrendra Park IPO GMP today

Park Hotel IPO GMP today, or grey market premium, is +34. This indicates Apeejay Surrendra Park share price were trading at a premium of 34 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Park Hotel share price was indicated at 189 apiece, which is 21.94% higher than the IPO price of 155.

Based on the last 12 sessions of grey market activity, today IPO GMP is showing signals towards the lower side, as per analysts at investorgain.com. The lowest GMP is 0, while the highest GMP is 70.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Also Read: Apeejay Surrendra Park Hotels IPO: Issue fully booked on day 1; retail, NII portion sees huge demand. Check GMP

Apeejay Surrendra Park IPO Review

Sushil Financial Services Pvt. Ltd

The brokerage believes that the business is requesting a PE multiple on the high end of the price range of 56.36x using diluted EPS for FY23 ( 2.75), and for H1FY24 ( 1.31), it is requesting a PE of 59.16x annualizing diluted EPS. The industry average is 73.6x, with 92.34x and 56.59x being the greatest and lowest values, respectively. Based on its NAV of 33.13 as of September 30, 2023, the issue is valued at a P/BV of 4.68. The issue looks to be fairly priced.

"The company business has become profitable from FY23 onwards and boasts successful hospitality brands with a diversified portfolio of hotels and restaurants across India, contributing to stable earnings. Further develop and strengthen the ‘Flurys’ brand in the retail food and beverage business through expansion plans.

Looking at all the factors, risks, opportunities and valuation, investors can subscribe to the issue with a long-term view," the brokerage said.

Reliance Securities 

In addition to having a strong operating track record of high occupancy, competitive average room rates, and RevPAR for its properties, the brokerage claims that the company is a well-established player in the Indian hotel industry with a portfolio of 30 hotels spread across popular areas in key geographies in India. The company's historical revenue share from the F&B segment has also been higher than that of its peers.

“We believe the asset light model, repayment of debt, strong industry tailwinds, and development of new owned and managed properties with improved operational efficiency to achieve superior performance. Hence we recommend a SUBSCRIBE to the issue," the brokerage said. 

Also Read: Apeejay Surrendra Park IPO: Check out 10 key things to know from RHP before investing

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.

 

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More Less
Published: 07 Feb 2024, 07:43 AM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Switch to the Mint app for fast and personalized news - Get App