Apeejay Surrendra Park Hotels Ltd, which runs hotels under the "The Park" brand, has mobilised ₹409.5 crore from anchor investors days before its initial public offering.
The company has decided to allocate 2.64 crore equity shares to 37 funds at ₹155 apiece, which is also the upper end of the price band, according to a circular uploaded on BSE's website on Friday.
Societe Generale, Citigroup Global Markets Mauritius, Integrated Core Strategies (Asia) Pte Ltd, Bajaj Allianz Life Insurance Company, SBI General Insurance Company, Kotak Mahindra Life Insurance Company, and CLSA Global Markets Pte Ltd are among the anchor investors.
In addition, ICICI Prudential Mutual Fund (MF), Edelweiss Mutual Fund, Whiteoak Capital, Bandhan Mutual Fund and Quant Mutual Fund participated in the anchor round.
The issue with a price band of ₹147 to ₹155 per share will open for public subscription on February 5 and conclude on February 7.
The ₹920-crore IPO is a combination of a fresh issue of equity shares worth ₹600 crore and an offer for sale (OFS) of equity shares to the tune of ₹320 crore by promoters and investor shareholders.
Those offering shares in the OFS are Apeejay Surrendra Trust, Apeejay Pvt Ltd, RECP IV Park Hotel Investors Ltd, and RECP IV Park Co-Investors Ltd.
At present, promoters and promoter group members hold a 94.18 per cent stake in the company, and the two investors own 5.82 per cent shareholding in the firm.
Proceeds of the fresh issue would be utilized towards the payment of debt and for general corporate purposes.
The company operates hospitality assets under its brands, The Park, The Park Collection, Zone by The Park, Zone Connect by The Park, and Stop by Zone. It has five decades of experience in the hospitality business of owning and operating hotels, with the first hotel being launched under brand "The Park" at the iconic Park Street in Kolkata.
It has established a presence in the retail food and beverage industry through its retail brand 'Flurys'.
Also, it operates 81 restaurants, night clubs and bars as of September 30, 2023.
The company has a presence in Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, and Delhi-NCR as well as in other major cities such as Coimbatore, Jaipur, Jodhpur, Jammu, Navi Mumbai, Raipur, and Visakhapatnam.
JM Financial, Axis Capital, and ICICI Securities are the book-running lead managers to the issue.