Park Hotels shares are listed at a huge premium, with profits of over Rs 3,000 per lot

Shares of APJ Surindra Park Hotel got listed on Monday, after a great response to the IPO. Shares of companies operating five-star hotels, restaurants, nightclubs and bars in the country were listed at a premium of 20 percent. With this the company entered the market with a market value of around Rs 4000 crore.

Minimum investment of retail investors

The IPO of APJ Surendra Park Hotels was launched on February 5. The last date for bidding in this IPO was February 7. In this IPO, a price band of Rs 147 to Rs 155 was fixed for shares priced at Rs 1 each, while one lot of the IPO consisted of 96 shares. This means that one share will have to invest at least Rs 14,880 in this IPO.

So much income was earned on each lot.

The gray market was already showing signs of good listings. Before the listing, shares of Apeejay Surendra Park Hotels were trading at a premium of 25 per cent on the gray market. The share opened at Rs 187 on BSE, while the upper price band of the IPO was Rs 155. Thus IPO investors earned Rs 32 per share and Rs 3,072 per lot.

The size of the IPO was so large.

The IPO size of APJ Surendra Park Hotels was Rs 920 crore. The IPO consisted of both an offer for sale and a fresh equity issue. Fresh equity issues of Rs 600 crore were made in the IPO, while shares worth Rs 320 crore were offered under the OFS. After the IPO, the allotment of shares took place on February 8 and the shares were credited to the demat accounts of the successful bidders on February 9.

Scope of business of the company

APJ Surendra Park Hotel Limited has a good name in the hospitality sector. The company operates hotels and restaurants under the names The Park, The Park Collection, Zone by the Park, Zone Connect by the Park, Stop by Zone etc. The company also has a presence in the food and beverage business under the brand name Fluris. As of March 31, 2023, the company was operating 80 restaurants, nightclubs and bars. The company has 27 hotels in different cities of the country.

Great subscription across all categories

Its IPO received a good response in every category. The IPO was subscribed 79.23 times in QIB category, 55.26 times in NII and 32 times in retail category. The portion reserved for employees with a discount of Rs.7 was subscribed the least 5.73 times. Overall, this IPO received 62.91 times subscription.

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