Apeejay Surrendra Park Hotels Ltd IPO witnessed varying subscription levels from different investor categories. For Qualified Institutional Buyers (QIBs), the subscription stood at 1.17 times the total shares allotted for their category. Non-institutional investors showed strong interest, with a subscription rate of 3.24 times. Retail individual investors (RIIs) exhibited even greater enthusiasm, subscribing to shares allocated to them at 5.70 times the number assigned.
The IPO garnered an overall subscription rate of 2.52 times the total shares available, indicating a healthy response from investors across the board.
Apeejay Surrendra Park Hotels Ltd IPO – Fundamental Analysis
Apeejay Surrendra Park Hotels Limited has demonstrated a remarkable financial turnaround, making it an intriguing investment prospect with caution. Their revenue surged, doubling from ₹1,788.30 million in 2021 to ₹5,061.30 million in 2023, showcasing their capacity to expand and meet market demand effectively. Moreover, the company’s equity rebounded to ₹5,554.62 million in 2023, indicating a strengthened financial foundation and enhanced shareholder value.
Furthermore, the company managed expenses adeptly, aligning them with revenue growth, as expenses increased from ₹2,620.24 million in 2021 to ₹4,589.63 million in 2023. This proportional rise in expenses signifies the company’s successful management of costs, resulting in a return to profitability. Apeejay Surrendra Park Hotels Limited significantly improved its profitability, shifting from a loss of ₹758.84 million in 2021 to a profit of ₹480.62 million in 2023. This dramatic improvement reflects their operational efficiency and effective cost-control measures, highlighting their potential as a sound investment opportunity.
Apeejay Surrendra Park IPO Risks And Challenges
Apeejay Surrendra Park’s risks include delays in hotel development, challenges in constructing serviced apartments, and past/future non-compliance with financing agreements that threaten business, operations, and financial stability.
The company is exposed to risks from hotel and land development delays, which can negatively affect its business operations, financial health, and cash flow. The construction delays in new buildings and property expansions may have adverse consequences. Additionally, embarking on the unique project of constructing serviced apartments at EM Bypass, despite lacking previous company experience, introduces potential complexities and uncertainties in the development process.
Furthermore, previous non-compliance with financing agreement covenants and delays in loan repayment could pose significant threats. If these breaches are not waived, future violations or repayment delays can harm the company’s business, operations, cash flow, and financial stability.
