Surrendra Park Hotels-owned Flurys files papers for Rs 1000-crore IPO

Apeejay Surrendra Park Hotels, which owns the famous bakery brand Flurys, on Wednesday filed its draft red herring prospectus  (DRHP) for a Rs 1,000-crore initial public offering (IPO).  The company filed its DRHP with the Securities and Exchange Board of India (Sebi). 

The IPO comprises Rs 400 crore of fresh issuance of shares, along with an offer for sale worth Rs 600 crore. The company is planning to use the proceeds of the fresh issue to repay its burrowings.

Apeejay Surendra Park Hotels owns luxury boutique hotels in India under “The Park” brand. At present, it owns and operates 22 hotels in 15 cities across India, with 1,937 rooms. The company’s retail food and beverage business segment comes under the brand Flurys. Flurys has 38 outlets in Kolkata and one outlet each in Navi Mumbai and New Delhi. The company is planning to get listed by  April 2020. ICICI Securities, Axis Capital and JM Financial are the bankers to the issue.

According to PRIME Database, only 16 companies had come with IPOs in 2019, against 24 the previous year. Even the total amount raised through IPOs shrank to  Rs 12,362 crore in 2019, almost a third of the Rs 30,959 crore raised in the previous year. However, most companies that were listed in 2019 had performed well in the secondary market.