Apeejay Surrendra Park hits the bourses with a premium of 20% at Rs 186. The company opened its IPO to retail investors at a price band of Rs 147 – 155 per equity share. The issue was opened on February 05 and was closed on February 07.

The issue raised a total of Rs 920 crore through fresh issue and offer for sale. The company’s shares had a 24.5% premium over its issue price in the grey market. The grey market is an unofficial market where companies’ shares trade illegally before listing. 

The company has raised Rs 409.50 crore from the anchor investors. The shares of the company will be listed on both the bourses, NSE and BSE. According to the company, the raised money will be used for the payment of borrowings and other corporate purposes.

The company is in the hospitality business and operates under the brand names “THE PARK”, “THE PARK Collection”, “Zone by The Park”, “Zone Connect by The Park” and “Stop by Zone”. According to the company, it also has a presence in the retail food and beverage industry, with the brand name ‘Flurys.

The company operates 80 restaurants, nightclubs, and bars. The company currently operates 27 hotels, which are spread across different categories such as luxury boutique, upscale, and upper midscale. These hotels are present in various cities in India including Kolkata, New Delhi, Chennai, Hyderabad, Bangalore, Mumbai, Coimbatore, Indore, Goa, Jaipur, Jodhpur, Jammu, Navi Mumbai, Visakhapatnam, Port Blair, and Pathankot.

“Considering the optimistic momentum in the market and welcoming announcements made in the Interim Budget to promote the hospitality and tourism industry, we expect the hotel sector to outperform in coming years and Apeejay Surrendra Park Hotels is well placed in all metros to tap the tourism demand.  Its IPO offer also received strong subscription demand from all sets of investors, based on these rationales and demand, we expect Apeejay Surrendra Park Hotels to list around 20% higher to its issue price of 155/- a piece. We believe the healthy listing is justified on the back of reasonable valuations when compared to its peers followed by government push towards hospitality and tourism industry and its primary objective of reducing the debt which could lighten interest burdens which can improve the bottom lines in coming years. Hence, we recommend allotted investors to “HOLD” with a long-term perspective. For non allottees one can accumulate more in dips post listing and look to hold for a long term like 3-5 years’ time horizon,” said  Prashanth Tapse, Senior Vice President of Research at  Mehta Equities.

The book-running lead managers to the issue include Jm Financial, ICICI Securities, and Axis Capital. The registrar for the IPO is Link Intime India Private Ltd.