Small-cap stock: Apeejay Surrendra Park Hotels share price jumps 7% despite weak trends on Dalal Street. Here's why

Small-cap stock: Apeejay Surrendra Park Hotels share price jumped almost 7 per cent in intraday trade on the BSE on Thursday, April 24, defying weakness on the Dalal Street. Apeejay Surrendra Park Hotels share price opened at ₹154.55 against its previous close of ₹154.50 and rose 6.8 per cent to an intraday high of ₹165. Around 12:15 PM, the small-cap stock traded 6.54 per cent higher at ₹164.60. Equity benchmark Sensex was 0.32 per cent down at 79,859 at that time.

Apeejay Surrendra Park Hotels share price recently hit a 52-week low of ₹128.75 on April 7 this year, after hitting a 52-week high of ₹208.40 on January 3.

Why is Apeejay Surrendra Park Hotels share price rising in a weak market?

The small-cap stock witnessed healthy buying interest today after it announced it was set to acquire 90 per cent stake of Zillion Hotels and Resorts Private Limited for ₹209.25 crore.

"Apeejay Surrendra Park Hotels Limited has entered into a binding memorandum of understanding (MOU) today for the acquisition of 90 per cent stake of Zillion Hotels and Resorts Private Limited from its existing shareholders (namely Handa Family Shareholders and Nair Family Shareholders)," the company said in an exchange filing on April 24.

After the acquisition, Zillion Hotels and Resorts Private Limited will become a subsidiary of the company. Zillion Hotels owns and operates the 'Z Luxury Residences', including 62 service residences and food and beverage facilities at 29/1 J R Mhatre Road, opposite Iris Park, Juhu, Mumbai.

Earlier on April 15, Apeejay Surrendra Park Hotels announced the launch of its new hotel, “Zone Connect by The Park,” in Jaisalmer, Rajasthan.

"We are excited to bring Zone Connect by The Park to the historic city of Jaisalmer. This hotel is a tribute to the region’s vibrant heritage, where our design philosophy keeps the social citizen – the guest, at the centre of it all and builds a buzzing, curious, connected world," said Vikas Ahluwalia, General Manager and National Head, Zone by The Park Hotels.

"We are already present with over 203 keys in Rajasthan. These include hotels in Jaipur, Jodhpur, Phalodi, and Udaipur. Zone Connect by the Park Jaisalmer will enable us to offer yet another unique experience in a culturally significant destination,” said Ahluwalia.

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