India-based Apeejay Surrendra Group-owned luxury boutique hotel chain The Park Hotels has reportedly begun preliminary work for an initial public offer next year.

It has hired advisors for the proposed IPO, reported  Moneycontrol citing multiple sources with knowledge of the matter.

One of the sources told the website: “The Park Hotels has engaged ICICI Securities as the merchant banker for now and is looking to hit the markets post March 2020. Additional bankers may be appointed later. These are early days so there is no clarity on the valuations as yet, but as of now, the plan is to offload 20-25 percent stake to the public and the issue is likely to be a mixture of primary and secondary issue of shares.”

The Park Hotel first opened at Park Street in Kolkata in 1967.

Another source told the website: “Prior to the proposed initial public offer of the company, there will be some internal restructuring.  Need for growth capital and deleveraging the balance-sheet are likely to be the main triggers for choosing the listing route. A suitable sectoral peer for The Park Hotels would be Lemon Tree Hotels.”

In July, Apeejay Surrendra Park Hotels chairperson Priyanka Paul said that the firm planned to add atleast 10 additional hotels with 1,239 rooms in its portfolio by the end of 2020 across India.

These upcoming hotels will come up at Indore, Pune, Vishakhapatnam, Goa, Srinagar, Amritsar, Tirupati and Vijayawada amongst others.