APEEJAY SURRENDRA PARK HOTELS LIMITED FILES DRHP WITH SEBI FOR UP TO ₹ 1050 CRORE IPO

Mumbai: Apeejay Surrendra Park Hotels Limited is the 8th largest hotel chain amongst hotel chains with asset ownership in India (Source: Horwath HTL Report). It operate hospitality assets under its own brands, “THE PARK”, “THE PARK Collection”, “Zone by The Park”, “Zone Connect by The Park” and “Stop by Zone”
Apeejay Surrendra Park Hotels Limited has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator Securities and Exchange Board of India (“SEBI”).The Company plans to raise funds through offer of equity shares (face value ₹ 1 each) through initial public offerings aggregating up to ₹ 1050 Crore. The offer comprises of fresh issue of equity shares aggregating up to ₹ 650 crore (The “Fresh Issue”) and offer for sale by Selling Shareholders aggregating up to ₹ 400 crore (The “Offer for Sale”).

The company proposes to utilize net proceeds from fresh issue to (i) Repayment/ prepayment, in full or in part of certain outstanding borrowings availed by Company estimated to be ₹ 550 crore ; and (ii) balance amount towards general corporate purposes.

The Offer for Sale comprises of equity shares aggregating up to ₹ 800.00 million by Apeejay Surrendra Trust (The “promoter selling shareholder”), up to ₹ 2,960.00 million by Apeejay Private Limited (The “promoter group selling shareholder”), up to ₹ 230.00 million by RECP IV Park Hotel Investors Ltd and up to ₹ 10.00 million by RECP IV Park Hotel Co-Investors Ltd (together referred to as the “investor selling shareholders”)
The Equity Shares that will be offered through the Red Herring Prospectus are proposed to be listed on the BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”)
JM Financial Limited, Axis Capital Limited and ICICI Securities Limited are the Book Running Lead Managers to the issue.