Apeejay Surrendra Park Hotels Limited

About Apeejay Surrendra Park Hotels Limited  Incorporated in 1987, Apeejay Surrendra Park Hotels Limited owns and operates hotels in India and ranks 8th in chain-affiliated hotel room inventory as of 30 September 2023. It offers hospitality assets under its brands - The Park, The Park Collection, Zone by The Park, Zone Connect by The Park, and Stop by Zone. It is also present in the retail food and beverage industry through its retail brand ‘Flurys.’  The company operates 30 hotels across upscale and upper midscale categories, with a pan-India presence in metros such as Kolkata, New Delhi, Chennai, Hyderabad, Bangalore, and Mumbai. It is also present in other major cities such as Coimbatore, Indore, Goa, Jaipur, Jodhpur, Jammu, Navi Mumbai, Visakhapatnam, Port Blair, and Pathankot representing 2,298 rooms.Under food, beverage, and entertainment, it operates 81 restaurants, nightclubs and bars under brands such as Zen, Someplace Else, Tantra, Roxy, iBar, The Leather Bar, Pasha and Aqua as of 30 September 2023. Its brand ‘Flurys’ operates 73 outlets in Kolkata, other parts of West Bengal, Mumbai and Navi Mumbai, and New Delhi.  Further, 21 properties are under its pipeline for growth and expansion, representing 1,855 rooms across different cities in India.  Between FY21 and FY23, it saw a CAGR rise of 41% in its revenue from operations. Moreover, the demand is expected to grow at a CAGR of 10.6% between FY24 and FY27, whereas the Indian restaurant services industry is estimated to grow at a CAGR of 10% to 12% by FY28. All of this could be beneficial for the company. And now, Apeejay Surrendra Park Hotels Limited is coming out with its initial public offer (IPO). The IPO will be an offer for sale as well as a fresh issue. The money raised through the fresh issue will be utilised for the repayment of borrowings and general corporate purposes. Its shares will be listed on the NSE and the BSE.   Here are key details about the Apeejay Surrendra Park Hotels Limited IPO:     Company Name  Apeejay Surrendra Park Hotels Limited   Company Type  Public    Company Established On  1987   Apeejay Surrendra Park Hotels Limited IPO Opening Date  5th February 2024    Apeejay Surrendra Park Hotels Limited IPO Closing Date  7th February 2024TBA   Apeejay Surrendra Park Hotels Limited IPO Allotment Status  8th February 2024    Credit of Shares to the Demat Account  February 9, 2024   Apeejay Surrendra Park Hotels Limited IPO Listing Date  February 12, 2024    Apeejay Surrendra Park Hotels Limited IPO Face Value  ₹1 per share   Apeejay Surrendra Park Hotels Limited IPO Lot Size  96 shares    Apeejay Surrendra Park Hotels Limited IPO Issue Size  Approx ₹920 crore   Apeejay Surrendra Park Hotels Limited IPO to be Listed on  BSE, NSE    Apeejay Surrendra Park Hotels Limited IPO Price band  ₹147 – ₹155 per share        Financial snapshot     Particulars  FY21  FY22  FY23  Q2FY24    Revenue  ₹ 178 crore  ₹ 255 crore  ₹ 506 crore  ₹ 264 crore    Net Profit  ₹ -75.8 crore  ₹ -28.2 crore  ₹ 48 crore  ₹ 22.9 crore               Here’s a quick look at Apeejay Surrendra Park Hotels Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   Well established brands with an experience of 55 years having won many awards for both the hotels and restaurants segment.  Strategically located across metros and emerging cities with a diversified portfolio of 30 owned, and 13 managed and leased hotels.  High occupancy rate of 91% for owned hotels in FY23.  A higher F&B and entertainment contribution to the total revenue compared to the average F&B and entertainment contribution of select listed hotel companies which adds to stable and non-cyclical earnings.  Flurys is a successful brand with a profitable track record of industry leading EBITDA margins of 17%, 24% and 17% in FY21, FY22 and FY23 respectively.   Risks and threats   Majority portion of its room bookings, contributing to ~49% of its total room revenue in FY23, originate from online travel agents and intermediaries who earn commissions.  Experienced a restated loss of ₹75 crore and ₹28 crore in FY21 and FY22 respectively.  Derives a significant portion of its room revenue, ~40% of the total room revenue in FY23, from corporate accounts which might be affected due to increased use of telepresence equipment.  Operates a capital intensive industry and has incurred indebtedness with a total borrowing of ₹597 crore as of 30 September 2023.  A large portion of its revenue, ~75% of the total income in FY23, came from its top five owned hotels with THE PARK Kolkata contributing 21% to the total income.  Has experienced negative cash flows from investing and financing activities in FY21, FY22 and FY23 consecutively.  Subject to extensive government regulation with respect to safety, health, environmental, real estate, excise, property tax and labor laws.            Apeejay Surrendra Park Hotels Limited IPO details  |Apeejay Surrendra Park Hotels Limited IPO date  According to the offer document filed by the company with the SEBI, the Apeejay Surrendra Park Hotels IPO’s opening date – in other words, the Apeejay Surrendra Park Hotels IPO launch date – will be 5th February 2024. The Apeejay Surrendra Park Hotels IPO closing date is 7th February 2024. After this, investors will be updated about the allotment status on 8th February 2024.  Investors, who have been allotted shares, can expect them to be credited to their demat account on 9th February 2024. The Apeejay Surrendra Park Hotels IPO listing date is 12th February 2024. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE.  |Apeejay Surrendra Park Hotels Limited IPO Price Band  The IPO is an offer for sale as well as a fresh issue. The Apeejay Surrendra Park Hotels IPO price band has been set between ₹147 and ₹155 per share. Interested investors can choose a price within this band to apply for the IPO.  The Apeejay Surrendra Park Hotels IPO listing price will be determined on 12th February 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.  |Apeejay Surrendra Park Hotels Limited IPO Lot size  The Apeejay Surrendra Park Hotels IPO details have been declared. The Apeejay Surrendra Park Hotels IPO lot size is set at 96 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Apeejay Surrendra Park Hotels IPO issue size is approx ₹920 crore          How to pre-apply for the Apeejay Surrendra Park Hotels Limited IPO?  You can pre-apply for the Apeejay Surrendra Park Hotels Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Apeejay Surrendra Park Hotels Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Apeejay Surrendra Park Hotels Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the Apeejay Surrendra Park Hotels Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Apeejay Surrendra Park Hotels Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Apeejay Surrendra Park Hotels Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Apeejay Surrendra Park Hotels LimitedIPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the Apeejay Surrendra Park Hotels Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Apeejay Surrendra Park Hotels Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the Apeejay Surrendra Park Hotels Limited IPO  To apply for the Apeejay Surrendra Park Hotels Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the Apeejay Surrendra Park Hotels Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Apeejay Surrendra Park Hotels Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.