Apeejay Surrendra Park Hotels IPO: fundamental analysis

As India's hospitality sector emerges from the pandemic, established players like Apeejay Surrendra Park Hotels Limited (ASPHL) are seeking to capitalise on the upswing. Their upcoming Initial Public Offering (IPO) aims to raise fresh capital and fuel further expansion. This blog delves into the key details of the IPO, offering a neutral and factual overview to help you make informed investment decisions.

About Apeejay Surrendra Park Hotels

Established in 1986, ASPHL boasts a rich heritage with 19 operational hotels and resorts across 10 Indian cities. Their "The Park" brand caters to diverse segments, offering luxury, business, and mid-priced accommodations. Beyond their own properties, 5 additional hotels and resorts operate under their management contracts, amplifying their reach.

IPO details

• The IPO of Apeejay Surrendra Park Hotels comprises a fresh issue of ₹600 crore and an offer for sale (OFS) of ₹320 crore by existing shareholders.
• The price band for the issue is set at ₹147 - ₹155 per share.
• The minimum investment amount is ₹14,760 for one lot of 96 shares.
• The issue opens for subscription on February 5th, 2024 and closes on February 7th, 2024.
• Listing on both BSE and NSE is expected tentatively on February 12th, 2024.

Financial performance

• ASPHL reported a revenue of ₹506.13 crore and a net profit of ₹48.06 crore in FY23.
• The company expects improved financial performance in the coming years, driven by increased tourism and expansion plans.

Potential risks

• The hospitality industry is cyclical and susceptible to economic downturns.
• The company faces competition from established players and new entrants.
• Dependence on key personnel and brand reputation can pose risks.

Important reminder

This blog is intended for informational purposes only and should not be considered financial advice for your IPO investment. Thoroughly research and consult with a qualified financial advisor before making any investment decisions. Remember, investing involves inherent risks, and you should always conduct your own research and consult with a qualified financial advisor before making any investment decisions.