Apeejay Surrendra Park Hotels is trading at a premium of 21% over its issue price | Market news| Trending Viral hub

The IPO received a strong response and the issue garnered 62.91 subscriptions. While the portion of qualified institutional buyers was subscribed 79.23 times, the portion of non-institutional investors was subscribed 55.26 times. The retail portion also had excellent participation and was subscribed 32 times.

As of September 30, 2023, 81 restaurants, nightclubs and bars were operating, offering a wide selection of culinary experiences. The nightclub and entertainment division contributes to your brand positioning and allows for cross-selling opportunities. The company also operates a premium retail chain in the food and beverage business under the brand name ‘Flurys’, which has a successful and profitable track record of industry-leading earnings before interest, taxes, depreciation and amortization (ebidta) margins.

ASPHL is a well-established player in the Indian hospitality industry with a portfolio of 30 hotels spread across attractive locations in key geographies of India, has a strong operating track record of high occupancy, competitive average room rates and revenue per available room ( RevPAR). For its properties, its share of food and beverage (F&B) segment revenue has historically been high for the company compared to its peers.

Analysts at Reliance Securities believe that the asset-light model, debt repayment, strong industry tailwinds and development of new owned and managed properties with improved operational efficiency will help achieve outperformance.

India’s GDP per capita is expected to rise from $2,238 in FY22 to $3,985 in FY29, and rising individual incomes are expected to create additional discretionary spending that will keep demand levels at more than 11 percent and a strong recovery in tourism in the coming years. will drive superlative growth for the industry, the brokerage firm said in an IPO note.

“ASPHL has demonstrated solid revenue growth, with sales nearly tripling over the past three years. This turnaround is notable, considering the company’s transition from losses to profitability, reflected in the strong increase in net profit in the FY23. While return on equity turned positive in FY23, return on assets remains relatively modest, due to the capital-intensive nature of the hospitality industry. The valuation, although reasonable compared to its peers, reflects market optimism in the relatively high P/E ratio, which stands at 56.4 times based on FY23 EPS. Looking ahead, ASPH’s strategic initiatives, including reducing debt and its unique combination of hospitality and food and beverage services, position it favorably for sustainable growth and market leadership,” brokerage firm BP Equities said in an IPO note.

First published: February 12, 2024 | 10:16 am IS

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