Upcoming Initial Public Offering: Apeejay Surrendra Park Hotels Limited Files Red Herring Prospectus on January 29, 2024

Apeejay Surrendra Park Hotels Limited is set to launch its Initial Public Offering (IPO) with a total offer size of ₹920 crore, starting on February 5, 2024. The price band for the equity shares is fixed at ₹147 to ₹155 per share with a face value of ₹1 each. The bidding period will commence on February 5, 2024, and conclude on February 7, 2024, with the Anchor Investor Bidding Date scheduled for February 2, 2024. Investors can bid for a minimum of 96 equity shares, and thereafter, in multiples of 96 equity shares. The IPO consists of a fresh issue of equity shares amounting to ₹600 crore and an offer for sale of ₹320 crore by selling shareholders, making up the total offer size of ₹920 crore. The net proceeds from the fresh issue will be allocated for repaying/prepaying certain outstanding borrowings and general corporate purposes. The offer for sale includes shares from Apeejay Private Limited (₹296 crore), RECP IV Park Hotel Investors Ltd (₹23 crore), and RECP IV Park Hotel Co-Investors Ltd (₹1 crore). JM Financial Limited, Axis Capital Limited, and ICICI Securities Limited are the Book Running Lead Managers (BRLMs) for the IPO. The company’s equity shares, detailed in the red herring prospectus filed on January 29, 2024, are proposed to be listed on the BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE). The IPO follows the regulatory framework specified in Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, read with Regulation 31 of the SEBI ICDR Regulations. The book-building process allocates not less than 75% of the net offer to Qualified Institutional Buyers (QIBs), with up to 60% of the QIB portion available for anchor investors. Additionally, 5% of the net QIB portion is reserved for mutual funds, and the remaining portion is available for allocation to other QIB bidders, excluding anchor investors. A portion of the IPO, comprising up to [●] equity shares amounting to ₹100 million, is reserved for eligible employees. Non-institutional bidders can receive up to 15% of the net offer, with specific allocations for different application sizes. Retail individual bidders are eligible for up to 10% of the net offer. Investors, excluding anchor investors, are required to use the Application Supported by Blocked Amount (ASBA) process for their bids. It is important to note that anchor investors cannot participate in the anchor investor portion through the ASBA process. This offering is subject to requisite approvals, market conditions, and other considerations. Potential investors are advised to refer to the Risk Factors section in the Red Herring Prospectus for a detailed understanding of associated risks. The Equity Shares offered in the IPO are not registered under the U.S. Securities Act of 1933 and are intended for sale only outside the United States in compliance with Regulation S under the U.S. Securities Act and applicable local laws.