The IPO comprises a fresh equity issue of Rs 600 crore and an offer for sale (OFS) of Rs 320 crore. The price band for the IPO will be announced soon.
Under the OFS, promoter Apeejay Pvt Ltd will offload shares worth Rs 296 crore. Other selling shareholders include RECP IV Park Hotel investors and co-investors.
About 75% of the IPO will be reserved for qualified institutional buyers, 15% will be set aside for non-institutional investors and the remaining 10% for retail investors.
The company is the eighth-largest among hotel chains with asset ownership in India. It operates hospitality assets under its own brands, The Park, The Park Collection, Zone by Park among others.
It has a long-standing expertise of over five decades in the hospitality business of owning and operating hotels. It operates 27 hotels across luxury boutique upscale brands, and upper-midscale category. The company operates 80 restaurants, night clubs and bars, offering a wide selection of culinary experiences within its hotels as of March 2023. The sale of food and beverages, together with that of wine and liquor contributed Rs 228 crore to total income in FY23.The company has also established a presence in the retail food and beverage industry through retail brand ‘Flurys’.Proceeds from the fresh issue are proposed to be utilised towards repayment of debt in part or full and other general corporate purposes.
For the six months ended September 2023, the company has reported revenue growth of 14% to Rs 272 crore. Profit after tax increased 24% to Rs 22.9 crore.
The Park Hotels recorded RevPAR of approximately Rs 557 crore, an occupancy rate of 91.77% and average room per revenue of Rs 6 for the year ended March 2023.
JM Financial, Axis Capital, ICICI Securities are acting as the book running lead managers to the issue, while Link Intime India is the registrar.
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