Apeejay Surrendra Park Hotels Limited has filed a draft prospectus for an initial public offer to raise Rs 1,000 crore.
The offer includes a fresh issue of shares worth Rs 400 crore and an offer for sale worth Rs 600 crore from both promoters and existing investors.
Apeejay Surrendra Trust, which holds 17.18 per cent, along with Apeejay Private Ltd and Apeejay House Pvt Ltd, which together hold 28.05 per cent, are among the promoter and promoter group looking to dilute their stake through the offer for sale.
Around Rs 300 crore from the net proceeds of the offer would be utilised towards the retirement of debt.
The company said the prepayment of debt will improve its debt-equity ratio and enable the utilisation of the internal accruals for further investments. “We believe this would improve our ability to raise further resources in the future to fund potential business development opportunities,” the company said in the prospectus. The company currently operates under three brands — The Park, The Park Collection and Zone by The Park — covering 22 hotels in 15 cities across India with an inventory of 1937 rooms.
The company also operates retail food and beverage brand Flurys that has 38 outlets in Calcutta and one outlet each in Navi Mumbai and New Delhi.
According the Horwath HTL Report, The Park hotels recorded RevPAR (revenue per available room) of approximately Rs 4,900 and an occupancy rate of 90 per cent for the year ended March 31, 2019, higher than the average occupancy rate of 67 per cent and RevPAR of Rs 3,600 in the upscale segment.
