Park Hotel files draft papers with Sebi for Rs 1050 cr IPO
hotel chain Park Hotel has filed its draft papers with markets regulator Sebi to raise through an IPO. The issue comprises fresh equity issue of Rs 650 crore and an offer for sale (OFS) of Rs 400 crore. Under the OFS, promoters Apeejay Surrendra Trust and Apeejay Pvt Ltd will offload shares worth Rs 80 crore and Rs 296 crore respectively.
Other selling shareholders include RECP IV Park Hotel Investors and Co-Investors. The company is eighth largest amongst 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 sale 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’. Park Hotel in consultation with the book running lead managers, may consider a pre-IPO placement aggregating up to Rs 130 crore and if such thing is completed, the fresh issue size will be reduced.
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 year ending March 2023, the company has reported revenues of Rs 524 crore and a profit of Rs 48 crore in the same period. The Park hotels recorded RevPAR of approximately Rs 557 crore, an occupancy rate
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