Park Hotels share price: Park Hotels shares list at 21% premium over issue price

The shares of Apeejay Surrendra Park Hotels listed with a premium of 20.65% on the exchanges on Monday. The stock debuted at Rs 187 on BSE as against an issue price of Rs 155. Meanwhile, the stock debuted at Rs 186, up 20% on NSE.

Ahead of the listing, Park Hotels was trading with a GMP of Rs 41.

The IPO, which comprised a fresh equity issue of Rs 600 crore and offer for sale (OFS) of Rs 320 crore, was subscribed nearly 60 times at close.

The part reserved for institutional investors was subscribed the most at 75 times, followed by non-institutional investors at 52 times and qualified institutional buyers at 30 times.

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.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 six months ended September 2023, the company has reported revenue growth of 14% to Rs 272 crore. Profit after tax increased 24% to Rs 22.9 crore.

Park hotels recorded RevPAR of approximately Rs 557 crore, an occupancy rate of 91.77% and average room per revenue of Rs 6070 for the year ended March 2023.

JM Financial, Axis Capital, ICICI Securities acted as the book running lead managers to the issue, while Link Intime India was the registrar.

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