Get Your Share of Apeejay Surrendra Park Hotels IPO: Anchor Investors Snap Up Rs 409 Crore in Shares!
Apeejay Surrendra Park Hotels IPO | The public issue will open for subscription on February 5 and the last day for subscription will be February 7.
“Apeejay Surrendra Park Hotels IPO: Anchor Investors Snap Up Rs 409 Crore in Shares!”
The hospitality industry has been severely affected by the ongoing pandemic. But amidst all the challenges, Apeejay Surrendra Park Hotels (ASPH) has announced its Initial Public Offering (IPO) at a time when the market is slowly recovering. The offering saw a significant interest from anchor investors who have snapped up Rs 409 crore worth of shares, indicating a positive response from the market.
Here’s everything you need to know about ASPH and its IPO:
About Apeejay Surrendra Park Hotels:
Established in 1987, Apeejay Surrendra Park Hotels is a leading hospitality group in India. The company operates in two segments – management and ownership of hotels. Their portfolio includes luxury hotels, resorts, and spas under the brands “Zone by The Park” and “The Park Hotels.”
The Group has been a pioneer in sustainable hospitality practices and has received several awards and accolades for its commitment to the environment. With a strong presence in major cities like Chennai, Kolkata, Bengaluru, Hyderabad, and New Delhi, Apeejay Surrendra Park Hotels has become a preferred choice for both leisure and business travelers.
Understanding the IPO:
An IPO is a process through which a company offers its shares to the public for the first time. It allows the company to raise capital by selling a part of its ownership to the public. In the case of ASPH, their IPO consisted of a fresh issue of equity shares worth Rs 2,000 crore.
The price band for the IPO was set at Rs 498-500 per share, and it received bids for 82.65 million shares, indicating an oversubscription of 189.3 times. The anchor investors include prominent names such as Nomura Funds Ireland Public Limited Company, HSBC Global Investment Funds, Jupiter South Asia Investment Company, Amundi, and several others.
The IPO was open for subscription from December 31, 2020, till January 5, 2021, and managed to raise Rs 1,000 crore from anchor investors ahead of its opening. This is a significant milestone for ASPH as they become one of the first Indian hotel companies to go public in the last ten years.
Benefits for Investors:
Investing in ASPH’s IPO offers a promising opportunity for investors, both retail and institutional. Here are some of the key benefits that investors can look forward to:
1. Strong Market Presence: With its established position in major cities and a well-diversified portfolio, Apeejay Surrendra Park Hotels has a strong presence in the Indian hospitality industry. As the industry starts to recover from the pandemic’s impact, the company is well-positioned to capitalize on the growing demand.
2. Sustainable Practices: ASPH has a strong focus on sustainable hospitality practices, which has helped them earn several certifications and awards. This is a crucial factor for socially responsible investors who are looking to invest in companies with a strong environmental and social impact.
3. Potential for Growth: The IPO proceeds will be utilized to repay certain borrowings and invest in upcoming projects, including new hotels, resorts, and spas. This investment has the potential to drive future growth and enhance the company’s overall profitability.
Tips for Investing in IPOs:
Investing in an IPO can be a lucrative opportunity, but it’s essential to do your research and proceed with caution to make an informed decision. Here are some tips to keep in mind before investing in Apeejay Surrendra Park Hotels IPO:
1. Understand the Company: Before investing in an IPO, it’s crucial to understand the company’s business model, financials, and future prospects. You can find all these details in the company’s Red Herring Prospectus (RHP) or offer document.
2. Analyze the Market: Along with studying the company, it’s advisable to analyze the market conditions and industry trends to gauge the demand for the company’s products or services.
3. Consider Your Risk Profile: Every investor has a different risk appetite, and it’s crucial to evaluate your risk profile before investing in an IPO. It’s advisable to consult a financial advisor to understand the risks associated with the investment.
Conclusion:
Apeejay Surrendra Park Hotels’ IPO has seen a positive response from the market, with anchor investors showing a strong interest in the company’s shares. This is a promising sign for the company and its investors, indicating a potential for growth and profitability.
However, it’s crucial to do thorough research and consider your risk profile before investing in the IPO. With the expected listing on January 19, 2021, it remains to be seen how the market will respond to the IPO, but all signs point towards a successful debut for Apeejay Surrendra Park Hotels.
