Apeejay Surrendra Park Hotels, one of India's prominent hospitality chains operating under the brand name The Park, is poised to enter the public market with an initial public offering (IPO) of equity shares scheduled for 5 February 2024. This move marks a significant milestone in the company's growth trajectory.

During the IPO announcement, Priya Paul, the chairperson of The Park, unveiled the company's ambitious expansion plan. The strategy includes increasing its portfolio to 56 hotels across India by the year 2026. This expansion will extend the brand's footprint and cater to the growing demand for quality accommodation in the country.

The Park also aims to establish a new presence in Ayodhya, one of India's most revered pilgrimage destinations, reflecting the company's strategic focus on tapping into diverse market segments.

The IPO is set to raise Rs9.2 billion ($110.86 million), comprising a fresh issue of equity shares amounting to Rs6 billion ($72.30 million) and an offer for sale (OFS) of Rs3.2 billion ($38.56 million) by selling shareholders. The price band for the shares has been fixed between Rs147 and Rs155 per share, with a minimum bid requirement of 96 shares.

The proceeds from the fresh issue are earmarked for debt repayment and for addressing general corporate purposes. The offer for sale segment includes shares from Apeejay Private and RECP IV Park Hotel Investors, indicating a strategic divestment by existing stakeholders.

The IPO's book-running lead managers include notable financial institutions JM Financial, AXIS Capital, and ICICI Securities. Upon completion, the IPO will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India.

Last year, The Park made a significant entry into Odisha with the inauguration of Zone by the Park Gopalpur. As of now, The Park boasts a network of 30 hotels in 20 cities, encompassing a total of 2,298 keys. Additionally, the company operates 81 food and beverage outlets, including nightclubs, bars, and the iconic Flurys retail chain.

The Park operates under various brands, including The Park Collection, The Park, and Zone by The Park, with a business model that encompasses both asset ownership and brand operations in India.