Grand Continent Hotels Limited, a mid-market hotel chain, is set to enter the public market with its IPO, valued at ₹3.72 crores, comprising an entirely fresh issue of 3.29 lakh shares. The subscription period opens on March 20, 2025, and closes on March 24, 2025. Investors can track the company's journey as it prepares for its listing on the NSE SME platform, scheduled for Thursday, March 27, 2025.
The IPO offers equity shares with a face value of ₹10, priced within a band of ₹107 to ₹113 per share, with a lot size of 1,200 shares. Retail investors can participate with a minimum investment of ₹1,28,400 for one lot, while High Net-worth Individuals (HNIs) can subscribe with a minimum of ₹2,71,200 for two lots. The company has outlined a swift post-subscription timeline, with share allotment set for March 25, 2025, followed by its NSE listing on March 27, 2025. As Grand Continent Hotels takes this significant step, investors have the opportunity to engage with a growing player in India’s hospitality sector.
Grand Continent Hotels Limited IPO is a fundraise worth ₹74.46 crores comprising purely of a fresh issue of 62.60 lakh shares reserved for the market maker Alacrity Securities Limited. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from March 20, 2025, to March 24, 2025, providing an opportunity for investors looking to gain a stake in the hospitality segment.
| Grand Continent Hotels IPO date | March 20, 2025 - March 24, 2025 |
| Price band | ₹107 to ₹113 per share |
| Face value | ₹10 per share |
| Lot size | 1,200 shares |
| Issue type | Book Built Issue IPO |
| Fresh issue size | 62,60,400 shares amounting to ₹70.74 crores |
| Total issue size | 65,89,200 shares amounting to ₹74.46 crores |
| Listing at | NSE SME |
| Market maker portion | 3,30,000 - Alacrity Securities Ltd |
| Shareholding post-issue | 2,49,19,403 shares |
| Shareholding pre-issue | 1,86,59,003 shares |
The Grand Continent Hotels Limited IPO opens for subscription on March 20, 2025, and closes on March 24, 2025, with allotment scheduled for March 25, 2025.
| IPO open date | March 20, 2025 (Thursday) |
| IPO close date | March 24, 2025 (Monday) |
| Basis of allotment | March 25, 2025 (Tuesday) |
| Initiation of refunds | March 26, 2025 (Wednesday) |
| Credit of shares to Demat account | March 26, 2025 (Wednesday) |
| Listing date on NSE SME | March 27, 2025 (Thursday) |
| Cut-off time for UPI mandate confirmation | 5 PM on March 24, 2025 (Monday) |
Founded in 2011, Grand Continent Hotels Limited is a mid-market hotel chain in India, operating 19 properties across six major cities with over 900 rooms. Strategically located in prime urban areas, the hotels cater to both business and leisure travelers, offering a balance of comfort, convenience, and value for money.
The company focuses on seamless service interactions, user-friendly infrastructure, and consistent service levels, ensuring a superior guest experience. Regular benchmarking and service upgrades help them stay aligned with evolving customer expectations.
As of September 30, 2024, Grand Continent Hotels, along with its JV Partner Entities, manages 16 hotels with 753 keys across Karnataka (Bengaluru/Mysuru), Tamil Nadu (Hosur), Goa (Anjuna/Morjim), Andhra Pradesh (Tirupati), and Telangana (Secunderabad). Targeting Indian middle-class travelers and business professionals, the company provides differentiated, cost-effective hospitality solutions.
The proceeds from the Grand Continent Hotels IPO will be allocated towards repaying or prepaying certain outstanding borrowings (₹340.81 million), expanding hotel properties across India (₹167.92 million), and funding general corporate purposes.
The Grand Continent Hotels Limited IPO’s key performance indicators, as on March 31, 2024, reflect the company's financial health with a Return on Equity of Return on 25%, Return on Capital Employed (ROCE) at 17% and a Debt-to-Equity ratio of 1.13. The Return on Net-Worth (RoNW) stands at 26.67%, and the PAT Margin was 13.05. The Price to Book Value was 1.50. The company’s market capitalisation is ₹74.46 crores.
| Period Ended | September 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 31.86 | 31.53 | 17.05 | 6.03 |
| Assets | 97.94 | 73.91 | 42.26 | 34.37 |
| Net Worth | 40.18 | 29.99 | 0.59 | -1.63 |
| Profit After Tax | 6.81 | 4.12 | 1.05 | -0.79 |
| Reserves & Surplus | 22.36 | 26 | 0.42 | -2.64 |
| Total Borrowing | 40.22 | 34.96 | 37.07 | 34.72 |
Amount in ₹ crores
The pre-IPO EPS is at ₹2.21 while the post-IPO EPS will be ₹5.47. Similarly, the pre-IPO Price to Earnings ratio is 51.24 and will become 20.67 post-IPO.
Grand Continent Hotels has established itself as a strong player in the premium mid-priced hospitality segment, offering quality service and strategically located properties that cater efficiently to both business and leisure travelers. With a focus on asset management, the company has successfully optimized occupancy rates, revenue streams, and cost efficiency. Notably, the refurbishment of its Bengaluru property led to a significant increase in Average Room Rate (ARR) from ₹2,000 to ₹3,200.
Backed by an experienced leadership team with over 13 years in the hospitality industry, the company is well-positioned to capitalize on industry growth trends. Its strong presence in key urban areas, combined with asset optimization strategies and a focus on guest experience, further strengthens its competitive edge.
A key risk factor is that the company has issued equity shares within the last 12 months at prices lower than the current offer price. Additionally, a majority of its hotel properties operate on lease or license agreements, making them subject to renewal risks. Certain agreements also have stamping or registration irregularities, which could pose legal enforcement challenges.
Moreover, the company's franchise agreements with Sarovar and Royal Orchid are non-exclusive, increasing competition within its market segment. Another potential risk is its business concentration in Bengaluru and Tirupati, which exposes the company to regional market fluctuations and limits diversification.
Investing early in Grand Continent Hotels Limited’s public offering could provide an opportunity to be part of its growth journey in the hospitality sector. However, potential investors should evaluate various aspects, including the company's operational history, financial stability, industry trends, and long-term strategy. It is essential to align the investment decision with personal financial goals and risk tolerance. Reviewing the offer document and seeking professional guidance, if necessary, can help make a well-informed decision about participating in this IPO.
What is the Grand Continent Hotels Limited IPO?
The Grand Continent Hotels Limited IPO is an NSE offering consisting of 3.29 lakh equity shares with a face value of ₹10, aiming to raise ₹3.72 crore. The price band has been set between ₹107 to ₹113 per share, with a minimum order quantity of 1200 shares. This IPO will be open for subscription from March 20, 2025, to March 24, 2025. Indorient Financial Services Limited is the book-running lead manager, Link Intime India Private Limited is the registrar while Alacrity Securities Limited is the market maker.
When will the Grand Continent Hotels IPO open?
The Grand Continent Hotels Limited IPO will open for subscription on March 20, 2025, and will close onMarch 24, 2025.
When is the Grand Continent Hotels IPO listing date?
The tentative listing date for the Grand Continent Hotels Limited IPO is Thursday, March 27, 2025.
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