Grand Continent Hotels IPO: Comprehensive Analysis and Investment Guide
The IPO market continues to offer exciting opportunities for investors. One such opportunity is the Grand Continent Hotels IPO, opening on March 20, 2025. This comprehensive guide provides an in-depth analysis of the IPO, covering everything from company details to investment considerations. Whether you are a seasoned investor or new to the IPO landscape, this article will equip you with the knowledge needed to make an informed decision.
What is Grand Continent Hotels Limited?
Grand Continent Hotels Limited, established in 2011, operates as a hotel chain primarily targeting the mid-market segment in India. With 19 properties across six major cities and over 900 rooms, the company focuses on providing value-for-money accommodations to both business and leisure travelers. Their hotels are strategically located in prime urban areas, offering modern amenities and straightforward service interactions.
Key Highlights of Grand Continent Hotels:
- Mid-Market Focus: Catering to middle-class guests and business travelers.
- Strategic Locations: Properties in key urban areas across India.
- Modern Amenities: Well-furnished rooms, on-site dining, conference facilities, and complimentary Wi-Fi.
Grand Continent Hotels IPO Details
The Grand Continent Hotels IPO is a book-built issue aiming to raise Rs 74.46 crores through a combination of fresh issue and offer for sale. Here are the key details:
| IPO Date | March 20, 2025 to March 24, 2025 |
|---|---|
| Listing Date | Tentatively, March 27, 2025 |
| Face Value | ₹10 per share |
| Issue Price Band | ₹107 to ₹113 per share |
| Lot Size | 1,200 Shares |
| Total Issue Size | 65,89,200 shares (aggregating up to ₹74.46 Cr) |
| Fresh Issue | 62,60,400 shares (aggregating up to ₹70.74 Cr) |
| Offer for Sale | 3,28,800 shares (aggregating up to ₹3.72 Cr) |
| Listing At | NSE SME |
IPO Reservation Details
The IPO allocates shares to different investor categories as follows:
| Investor Category | Shares Offered | Percentage |
|---|---|---|
| Anchor Investor | 18,73,200 | 28.43% |
| Market Maker | 3,30,000 | 5.01% |
| QIB | 12,49,200 | 18.96% |
| NII (HNI) | 9,37,200 | 14.22% |
| Retail | 21,87,600 | 33.2% |
| Total | 65,89,200 | 100% |
Lot Size and Investment
Investors can bid for a minimum of 1200 shares and in multiples thereof.
| Application | Lots | Shares | Amount (at ₹113 per share) |
|---|---|---|---|
| Retail (Min) | 1 | 1200 | ₹1,35,600 |
| Retail (Max) | 1 | 1200 | ₹1,35,600 |
| HNI (Min) | 2 | 2400 | ₹2,71,200 |
Grand Continent Hotels IPO: Anchor Investors
Grand Continent Hotels IPO has raised Rs 21.17 crore from anchor investors, which indicates strong institutional interest. The anchor bid date was March 19, 2025, highlighting early confidence in the company’s potential.
| Bid Date | March 19, 2025 |
|---|---|
| Shares Offered | 18,73,200 |
| Anchor Portion Size (In Cr.) | 21.17 |
| Anchor lock-in period end date for 50% shares (30 Days) | April 24, 2025 |
| Anchor lock-in period end date for remaining shares (90 Days) | June 23, 2025 |
Company Financials
Understanding the financial health of Grand Continent Hotels Limited is crucial for investors. Here’s a snapshot of their financial performance:
| Period Ended | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| Assets | 97.94 | 73.91 | 42.26 | 34.37 |
| Revenue | 31.86 | 31.53 | 17.05 | 6.03 |
| Profit After Tax | 6.81 | 4.12 | 1.05 | -0.79 |
| Net Worth | 40.18 | 29.99 | 0.59 | -1.63 |
Amount in ₹ Crore
Key Performance Indicators (KPI)
Analyzing the KPIs provides insight into the company’s efficiency and profitability.
| KPI | Value (as of Sun, Mar 31, 2024) |
|---|---|
| Market Capitalization | Rs 281.59 Cr |
| ROE | 25% |
| ROCE | 17% |
| Debt/Equity | 1.13 |
| RoNW | 26.67% |
| PAT Margin | 13.05% |
| Price to Book Value | 1.50 |
Objects of the Issue
The IPO aims to utilize the net proceeds for the following objectives:
- Repayment and/or prepayment of outstanding borrowings: ₹340.81 Million
- Expansion of hotel properties in India: ₹167.92 Million
- General Corporate Purpose
Promoter Holding
The promoters of Grand Continent Hotels Limited are Mr. Ramesh Siva and Mrs. Vidya Ramesh.
- Share Holding Pre Issue: 75.02%
- Share Holding Post Issue: *Value will be calculated based on Equity Dilution
Company Contact Details
For further information, you can contact the company at:
- Address: 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/
IPO Registrar
The registrar for the Grand Continent Hotels IPO is:
- Link Intime India Private Ltd
- Phone: +91-22-4918 6270
- Email: grandcontinent.ipo@linkintime.co.in
- Website: https://linkintime.co.in/Initial_Offer/public-issues.html
Conclusion
The Grand Continent Hotels IPO presents an interesting opportunity for investors looking at the mid-market hospitality segment. With strategic locations, modern amenities, and a focus on value-for-money, the company is well-positioned to capitalize on industry tailwinds.
However, as with any investment, it's essential to consider the risks and conduct thorough research. By analyzing the company's financials, objectives, and other relevant details, investors can make a well-informed decision and assess whether this IPO aligns with their investment goals.