Apeejay Surrendra Park Hotels,
which runs that Park hospitality chain across the country, would mostly use the proceeds of its proposed initial public offer (IPO) to retire debt, an official said on Tuesday.
Apeejay Surrendra has already filed the DRHP with the capital market regulator SEBI which is expected to give its approval in March.
"The proceeds of the IPO will be used largely to retire debt and for meeting other regular operating expenses," Vijay Dewan, MD of Apeejay Surrendra Park Hotels, told reporters on the sidelines of a CII event here.
He said the debt of the company is around Rs 450 crore. "We are expecting the SEBI approval by March", he said.
The DRHP was filed during December end, he said.
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On new properties, Dewan said the company is setting up a 200-room hotel in Pune for which construction has already started.
The Pune hotel will cost around Rs 160 crore and will be under the Park brand.
Apeejay will also add 100 rooms at Vizag and another 80 rooms in Navi Mumbai.
Dewan said the company will gradually move towards managing properties rather than owning them.
The company has also taken over the Danish Tavern at Srirampur from the West Bengal government, he said.
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