Park Hotels IPO Review, Dates, Allotment, Size, Live Bid Details, GMP & RHP

Let’s have a detailed review of the company and analytics of the The Park Hotels Limited IPO release date, IPO offer price, Park Hotels IPO subscription, The Park Hotels IPO allotment, grey market price and other details like the company’s background, its financial positions, Apeejay Surrendra Park Hotels Limited Promoters and other related things.

Park Hotels IPO Review & Ratings

Summary of The Park Hotels IPO

They are one of India’s top 10 hospitality companies in the upscale segment and they have pioneered the concept of luxury boutique hotel in India under “THE PARK” brand, which has since been extended to their upper-midscale brand “Zone by The Park”, according to the Horwath HTL Report.

The company owns and manage hotels for over 50 years, with their first hotel being launched under their brand “THE PARK” at the iconic Park Street in Kolkata.

This Company operates hotels under three brands, namely “THE PARK, “THE PARK Collection” and “Zone by The Park”. They are part of the Apeejay Surrendra group which is a leading Indian conglomerate. The group’s business is spread across industries such as hospitality, shipping, tea, real estate, retail brands such as Oxford bookstores, and education.

From FY 2016-17 to FY 2018-2019, as per the Restated Financial Statements

• Sale of food and beverage and sale of wine and liquor contributed to 37.23%, 39.15%, 41.53% and 40.79% of their total income for the years ended March 31, 2017, 2018 and 2019 and the three months period ended June 30, 2019, respectively.
• Sale of food and beverage and sale of wine and liquor for the years ended March 31, 2017, 2018 and 2019 and the three months period ended June 30, 2019 were Rs.1,379.83 million, Rs.1,520.58 million, Rs.1,789.57 million and Rs.406.80 million, respectively.

The Promoters of this company are KARAN PAUL, PRIYA PAUL, APEEJAY SURRENDRA TRUST AND FLURY’S SWISS CONFECTIONERY PRIVATE LIMITED. The lead manager to the issue is ICICI Securities Limited, Axis Capital Limited and JM Financial Limited. The Registrar to this issue is Link Intime India Private Limited.

Park Hotels IPO Dates

The opening and the closing date of The Park Hotels IPO is not known yet.

The Park Hotels IPO Subscription

The shares subscribed by the public will be updated here.

The Park Hotels IPO Allotment Status

Here, you can find the Allotment Status of this IPO.

Allotment of Equity Shares pursuant to the Fresh Issue and transfer of the Offered Shares of the Promoter Selling Shareholders pursuant to the Offer for Sale to the successful Bidders. However, the Allotment status is not yet disclosed.

The Park Hotels IPO Listing Date

Please find below the important dates /events of this IPO:

Park Hotels IPO Price Band / Cash Price

The face value of each share is Rs.1, and the cash price of the IPO is Rs.[●]. 

The Park Hotels IPO Size

This Initial Public Issue of [●] Equity Shares of Rs.1 each for cash at a price of Rs.[●] per equity share aggregating to Rs.10,000 Million.

The Park Hotels IPO Share Offering

Fresh Issue: The Fresh Issue of [●] Equity Shares by their Company of Rs.1 each at a price of Rs.[●] per equity share aggregating to Rs.4,000 million,

Offer for Sale : Offer for sale of up to [●] Equity Shares by the Promoter Selling Shareholder aggregating up to Rs. 6,000 million.

The Park Hotels Limited – Company Overview

They own and operate as well as manage 22 hotels in 15 cities across India, with 1,937 rooms. At present, they have pan-India presence in metros such as Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, Delhi – NCR as well as in other major cities such as Coimbatore, Goa, Jaipur, Jodhpur, Jammu, Navi Mumbai, Raipur and Visakhapatnam.

Their extensive experience in developing large scale hospitality business has resulted in them gaining a strong understanding of industry and market trends. Their vision of “Leadership through Differentiation” provides them with a competitive edge in their business, delivering consistently superior operating performance.

The Park Hotels IPO Business Segments

They also operate a retail food and beverage business segment under the brand ‘Flurys’, which possesses a distinctive track record since it was first established as a tea room and confectionery shop in Kolkata.

This Company operates under multiple formats such as kiosk format, café format and restaurant format. This company operates 38 outlets in Kolkata, and one outlet each in Navi Mumbai and New Delhi.

The Park Hotels – Flagship Brand

They own and operate hotels under their own brands. They also operate hotels under their brands on operation and management contracts for third party owners. Their three brands are as follows:

• “THE PARK” brand is positioned at the luxury boutique level, with a brand ethos that concentrates on design, style, and service to create differentiated and unique experiences at each hotel.
• “Zone by The Park” brand is positioned at the upper midscale level. The hotels focus on the “boutique” element, and offers differentiation to a wider market to which hotels under this brand are targeted.
• “THE PARK Collection” brand encompasses small luxury properties located in unique travel destinations targeted at the luxury hotel segment delivering personalized guest experiences.

The Park Hotels IPO – Diverse Business

They operate their hotels through a combination of the following: (i) direct ownership of hotel properties, (ii) longterm lease or license arrangements for the land and buildings, (iii) operation and management agreements on a contractual basis using their brand of hotels constructed by third parties.

These diverse modes of business operations complement each other and enable them to efficiently allocate their capital and capitalise on their brand for achieving sustained growth.

The Park Hotels Limited: Business strategies

• Continued focus on the development of existing land banks and strategic allocation of capital.
• Optimise capital efficiency through the adoption of their asset light model with an optimal portfolio of owned and managed hotels
• Improving operational efficiency to achieve superior performance
• Strengthen, develop and expand their existing brands
• Develop and strengthen the ‘Flurys’ brand in the retail food and beverage business segment through expansion plans

The Park Hotels Ltd – Financial Statements

On the basis of Standalone statement:

Earnings per Equity Share (in Million)

Park Hotels IPO – Promoters

The Promoters of this company are:

• KARAN PAUL, PRIYA PAUL,
• APEEJAY SURRENDRA TRUST AND
• FLURY’S SWISS CONFECTIONERY PRIVATE LIMITED

List of Related Parties (Key Managerial Personnel)

• Shalini Keshan, Company Secretary and Compliance Officer
• Atul Khosla, Chief Financial Officer
• Sujeet Kumar Singh, Vice President (Projects and Engineering)
• Sujata Guin, Vice President (Human Resources)

Interest in promotion of the Company

Their Promoters are interested in their Company to the extent of their respective shareholding in their Company and the shareholding of their relatives and entities in which they are associated as promoters and shareholders; any other distributions in respect of the Equity Shares held by them;

Interests of Promoter in property of their Company

None of their Promoters have any interest in any property acquired by their Company in the preceding five years from the date of this Draft Red Herring Prospectus or proposed to be acquired by their Company or in any transaction with respect to the acquisition of land, construction of building and supply of machinery

Park Hotels IPO Offer Details or Issue Details

Park Hotels IPO Issue Object

Their Company proposes to utilize the Net Proceeds towards funding the following objects:

1. Repayment/prepayment of certain borrowings availed by their Company; and

2. General corporate purposes

The Park Hotels Limited: Competitve Strength

• Demonstrated ability to grow successful brands through product innovation and service excellence.
• Market leaders in occupancy rate and REVPAR with a strong financial and operational track record.
• A leading hospitality company with a diversified portfolio of owned and managed hotels that are strategically located across India.
• One of the industry’s highest F&B contributions which adds to stable and non-cyclical earnings.
• Dedicated and experienced management team and board of directors
• ‘Flurys’ is an iconic brand with a successful and profitable track record of industry leading margins.

Park Hotels IPO – Basis of the Offer Price

The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

Qualitative factors are:

• Demonstrated ability to grow successful brands through product innovation and service excellence.
• Market leaders in occupancy rate and REVPAR with a strong financial and operational track record.
• A leading hospitality company with a diversified portfolio of owned and managed hotels that are strategically located across India.
• One of the industry’s highest F&B contributions which adds to stable and non-cyclical earnings.
• Dedicated and experienced management team and board of directors.
• ‘Flurys’ is an iconic brand with a successful and profitable track record of industry leading margins.

Park Hotels IPO – Quantitative Factors

• Price to Earnings (P/E) ratio in relation to Price band of Rs.46 to Rs.10 per Equity Share

The Park Hotels IPO : Competitive Peers

The Park Hotels IPO Lead Managers

The Park Hotels IPO Registrar to Offer

Park Hotels IPO – Other Details

• Statutory Auditor – S.R. Batliboi & Co LLP, Chartered Accountants
• Legal Counsel to the Company – AZB & Partners
• Bankers to the Company – ICICI Bank Limited, The Federal Bank Limited, HDFC Bank Limited.

The Park Hotels IPO Review by Top 10 Stock Brokers

The Park Hotels IPO Grey Market Premium

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The Park Hotels IPO News

News 1 – IPO ISSUE OPENS SOON [Download Prospectus]

News 2 – The Park Hotels IPO [Download RHP Prospectus]

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