Apeejay Surrendra Park Hotels Listing: Listing of shares of APJ Surendra Park Limited, which is included in the country’s largest hotel chain, is going to happen today. The stock price in the gray market is getting a premium of Rs 38 on the issue price of Rs 155 per share. It is understood that it may be listed with a premium of 25 percent. The stock is likely to be listed at around Rs 190-195.
This will last from February 5th to February 7th. IPO was subscribed a total of 62.91 times.
The quota reserved for qualified institutional buyers (QIBs) was subscribed 79.23 times.
It was subscribed 55.26 times in non-institutional investor quota and 32 times in retail quota.
The portion reserved for employees was subscribed 5.73 times.
The issue of Rs 920 crore was sold in the price band of Rs 147 to Rs 155 per share. Eligible employees of the company were offered a discount of Rs 7 per share.
What is the firm’s opinion?
Stockbox said in its note on the stock that although returns on equity turned positive in FY2013, returns on assets remain relatively modest due to the capital-intensive nature of the hotel industry. Valuations, although reasonable compared to peers, reflect market optimism in the relatively high P/E. Which is 56.4 times on the basis of FY 2023 EPS. Looking ahead, Apeejay Surendra Park Hotels will utilize the net proceeds for full or partial repayment/prepayment of certain outstanding borrowings taken by the company and general corporate expenses.
What are the details of IPO?
The price range of Rs 147-155 per share has been fixed for the IPO. The proceeds from the issue will be used to repay debt and for general company purposes. Before this, the company has raised Rs 409.5 crore from big investors. The hospitality company IPO is a book built issue of ₹920 crore. The issue is a combination of a fresh issue of ₹600 crore and a sale offer of ₹320 crore. The company is also giving discount on share price to its employees. The company has decided to give shares to its employees at a discount of Rs 7. Retail investors will have to bid for at least one lot.