IPO NOTE : Apeejay Surrendra Park Hotels Limited by Swastika Investmart
Apeejay Surrendra Park Hotels operate hospitality assets under its own brands, “THE PARK”, “THE PARK Collection”, “Zone by The Park”, “Zone Connect by The Park” and “Stop by Zone”.The company ranks as the eighth-largest in India in terms of chains affiliated with hotel room inventory. It has a long-standing expertise of over 55 years in the hospitality business of owning and operating hotels, with its first hotel being launched under its brand “THE PARK” at the iconic Park Street in Kolkata.
OBJECTS OF THE ISSUE
Payment of certain outstanding borrowings of the company.
General corporate purposes.
OUTLOOK & VALUATION
Apeejay Surrendra Park Hotels (ASPHL), is a well-established hotel chain with a prominent brand and pan-India portfolio. On the positive side, ASPHL boasts long-standing industry expertise, high occupancy rates, and a proven track record of product innovation and service excellence. Their expansion plans further indicate the potential for future growth. However, potential investors should carefully consider certain risks. ASPH has a history of losses, and its reliance on a limited number of key hotels exposes it to operational concentration risks. Additionally, the Indian hospitality industry is cyclical and susceptible to seasonal fluctuations. The IPO valuation of 56.36x P/E appears to be fully priced. However the company's potential for future growth and the improving industry outlook are promising, so investors may apply for this IPO.
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