Grand Continent Hotels IPO is set to open on March 20, 2025, and will close on March 24, 2025. This Book Built Issue IPO aims to raise approximately ₹74.46 crores, consisting of a fresh issue of ₹70.74 crores and an offer for sale (OFS) of up to 3,28,800 equity shares with a face value of ₹10 per share. Investors looking for an opportunity in the hospitality sector should keep an eye on this IPO.
The Grand Continent Hotels IPO price band is set between ₹107 to ₹113 per share, offering a structured allotment with 35% reserved for retail investors, 50% for Qualified Institutional Buyers (QIBs), and 15% for High Net-worth Individuals (HNIs). The IPO allotment date is scheduled for March 25, 2025, while the Grand Continent Hotels IPO listing date is set for March 27, 2025, on the NSE.
Financially, Grand Continent Hotels has showcased significant growth, making it a strong IPO candidate for long-term investors. The company reported a revenue of ₹31.53 crores in 2024, reflecting a strong increase from ₹17.05 crores in 2023. Similarly, its net profit surged to ₹4.12 crores in 2024, compared to ₹1.05 crores in 2023, indicating steady business expansion and profitability.
Grand Continent Hotels IPO Date & Price Band Details
| Category | Details |
|---|---|
| IPO Open Date: | March 20, 2025 |
| IPO Close Date: | March 24, 2025 |
| Face Value: | ₹10 Per Equity Share |
| IPO Price Band: | ₹107 to ₹113 Per Share |
| Issue Size: | Approx ₹74.46 Crores |
| Fresh Issue: | Approx ₹70.74 Crores |
| Offer for Sale: | Approx 3,28,800 Equity Shares |
| Issue Type: | Book Built Issue |
| IPO Listing: | NSE SME |
| Retail Quota: | Not more than 35% |
| QIB Quota: | Not more than 50% |
| NII Quota: | Not more than 15% |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Grand Continent Hotels: Company Overview, Strengths, and Risks
Grand Continent Hotels Limited, founded in 2011 by hospitality veteran Ramesh Shiva, has established itself as a prominent player in India’s mid-market hotel segment. With over two decades of experience, the company operates 16 properties encompassing 753 rooms across key Indian cities, including Bengaluru, Mysuru, Hosur, Goa, Tirupati, and Secunderabad.
Strengths:
- Strategic Partnerships: Affiliations with esteemed brands like Sarovar and Royal Orchid enhance the company’s market position and credibility.
- High Occupancy Rates: The company reported a 76% occupancy rate in FY24, surpassing the industry average of 68%, indicating strong demand and effective management.
- Customer Loyalty: Approximately 35% of bookings are from repeat customers, reflecting high satisfaction and brand loyalty.
- Asset-Light Model: By adopting an asset-light strategy with joint ventures, the company minimizes capital expenditure while expanding its footprint, particularly in Tier 2 and Tier 3 markets.
- Industry Recognition: The Bengaluru property received the “Best Mid-Market Business Hotel” award in 2023, showcasing operational excellence.
Risks:
- Geographic Concentration: With 80% of properties located in South India, the company is susceptible to regional disruptions. For instance, civic unrest in Bengaluru in September 2023 led to a three-day operational halt.
- Competitive Pressure: The entry of competitors like Lemon Tree Hotels, which launched three new properties in the same regions in FY24, intensifies pricing competition.
- Debt Obligations: The company faces a debt repayment of INR 18 crore by 2026, posing potential financial strain.
- Rising Operational Costs: An 18% compound annual growth rate in employee expenses from FY22 to FY24 indicates escalating operational costs.
- Lease Agreement Issues: Inadequately stamped lease agreements could lead to legal complications, similar to challenges faced by industry peers.
Grand Continent Hotels Limited has announced its Initial Public Offering (IPO), scheduled from March 20 to 24, 2025, aiming to raise ₹74.46 crores. The IPO proceeds are earmarked for debt repayment, expansion of hotel properties, and general corporate purposes.
In summary, Grand Continent Hotels Limited’s strategic partnerships, high occupancy rates, and asset-light model position it favorably in the mid-market hotel segment. However, potential investors should consider risks related to geographic concentration, competition, and financial obligations.
Grand Continent Hotels IPO Market Lot
The Grand Continent Hotels IPO has a minimum market lot of 1200 shares, requiring an application amount of ₹1,35,600 for retail investors. This means investors must bid for at least 1200 shares per lot to participate in the Grand Continent Hotels IPO. With a price band of ₹107 to ₹113 per share, this IPO is attracting attention due to the company’s strong financial growth and expanding business. Retail investors should carefully evaluate the investment potential before applying.
| Application | Lot Size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 1200 | ₹1,35,600 |
| Retail Maximum | 1 | 1200 | ₹1,35,600 |
| S-HNI Minimum | 2 | 2400 | ₹2,71,200 |
Grand Continent Hotels IPO Allotment & Listing Dates
The Grand Continent Hotels IPO is set to open for subscription on March 20, 2025, and will close on March 24, 2025. Investors eagerly awaiting the allotment status can expect the Grand Continent Hotels IPO allotment to be finalized on March 25, 2025. Following the allotment process, the much-anticipated Grand Continent Hotels IPO listing is scheduled for March 27, 2025, on the NSE. With strong financials and a promising growth outlook, this IPO is gaining significant attention from investors looking for potential long-term gains.
| Type | Date |
|---|---|
| IPO Open Date: | March 20, 2025 |
| IPO Close Date: | March 24, 2025 |
| Basis of Allotment: | March 25, 2025 |
| Refunds: | March 26, 2025 |
| Credit to Demat Account: | March 26, 2025 |
| IPO Listing Date: | March 27, 2025 |
Grand Continent Hotels IPO: Promoters
The promoters of Grand Continent Hotels are Mr. Ramesh Siva and Mrs. Vidya Ramesh.
Grand Continent Hotels IPO Company Financial Report
The Grand Continent Hotels IPO has demonstrated strong financial growth, making it an attractive investment option. The company’s revenue surged to ₹31.53 crores in 2024, a significant rise from ₹17.05 crores in 2023, reflecting a remarkable business expansion. Similarly, its net profit skyrocketed to ₹4.12 crores in 2024, compared to ₹1.05 crores in 2023, showcasing impressive profitability.
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax | Assets |
|---|---|---|---|---|
| 2022 | ₹6.03 | ₹7.67 | ₹0.79 | ₹34.37 |
| 2023 | ₹17.05 | ₹15.15 | ₹1.05 | ₹42.26 |
| 2024 | ₹31.53 | ₹26.01 | ₹4.12 | ₹73.91 |
| September 2024 | ₹31.86 | ₹23.86 | ₹6.81 | ₹97.94 |
Grand Continent Hotels IPO Valuation – FY2024
| KPI | Values |
|---|---|
| ROE: | 0.25% |
| ROCE: | 0.17% |
| EBITDA Margin: | 31.58% |
| PAT Margin: | 13.05% |
| Debt to equity ratio: | 1.13 |
| Earning Per Share (EPS): | ₹2.54 (Basic) |
| Price/Earning P/E Ratio: | 42.13 |
| Return on Net Worth (RoNW): | 26.67% |
| Net Asset Value (NAV): | ₹75.17 |
Grand Continent Hotels Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
|---|---|---|---|---|---|
| Lemon Tree Hotels Limited | 1.88 | 67.79 | 12.28% | 19.52 | – Cr. |
| Sayaji Hotels Limited | 8.18 | 32.38 | 7.04% | 90.49 | – Cr. |
| Royal Orchids Hotels Limited | 17.68 | 21.99 | 25.09% | 75.88 | – Cr. |
Objects of the Issue – Grand Continent Hotels IPO
The Grand Continent Hotels IPO aims to utilize the raised funds for strategic growth and financial stability. The key objectives of the issue include:
- Repayment or Prepayment of Borrowings: A portion of the proceeds will be used to repay and/or prepay certain outstanding loans, reducing the company’s debt burden and improving financial health.
- Expansion of Hotel Properties in India: The company plans to expand its hotel portfolio across key locations in India, strengthening its market presence and enhancing customer experience.
- General Corporate Purposes: A part of the funds will be allocated for day-to-day business operations, working capital requirements, and overall corporate growth.
With a strong expansion plan and focus on debt reduction, the Grand Continent Hotels IPO presents a promising opportunity for long-term investors. Stay updated for more insights on this IPO!
Grand Continent Hotels IPO Review
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Grand Continent Hotels IPO Registrar
MUFG Intime India Private Limited
Phone: +91-22-4918 6270
Email: grandcontinent.ipo@linkintime.co.in
Website: https://in.mpms.mufg.com/Initial_Offer/public-issues.html
Grand Continent Hotels IPO Lead Managers aka Merchant Bankers
- Indorient Financial Services Ltd
Company Address
Grand Continent Hotels Limited
S No. 245/1A/1B, Venpursham Village,
Veeralapakkam, Thiruporur, Chengalpattu,
Mamallapuram, Kanchipuram, Tirukalikundram-603110
Phone: 080 4165 6491
Email: cs@grandcontinenthotels.com
Website: https://grandcontinenthotels.com/
FAQs for Grand Continent Hotels IPO
Grand Continent Hotels IPO is a Book Built Issue IPO that aims to raise approximately ₹74.46 crores through a fresh issue and offer for sale.
The IPO opens on March 20, 2025, and closes on March 24, 2025.
The IPO price band is set between ₹107 to ₹113 per share.
The minimum lot size is 1200 shares, requiring an investment of at least ₹1,35,600 for retail investors.
The allotment will be finalized on March 25, 2025.
The IPO is scheduled to list on the NSE on March 27, 2025.
Retail investors have 35% of the total issue reserved for them.
Strategic partnerships with top hotel brands
High occupancy rates (76% in FY24)
Asset-light model for business expansion
Strong financial growth with rising revenue and profits
Geographic concentration in South India
Competitive pressure from industry peers
Debt obligations of ₹18 crore by 2026
Increasing operational costs
Investors can check the allotment status on the MUFG Intime India Private Limited website.
Disclaimer: This information is for general knowledge and informational purposes only and does not constitute financial, investment, or other professional advice.
