Grand Continent Hotels IPO is a book-built issue worth ₹74.46 crore, consisting of a fresh issue of 62.60 lakh shares amounting to ₹70.74 crore and an offer for sale of 3.29 lakh shares totaling ₹3.72 crore. The IPO opened for subscription on March 20, 2025, and is closing on March 24, 2025. The allotment is expected to be finalised on March 25, 2025, with the listing on NSE SME tentatively set for March 27, 2025.
The price band for the IPO is fixed at ₹107 to ₹113 per share. Investors can apply for a minimum lot size of 1,200 shares, requiring an investment of ₹1,28,400. To avoid oversubscription risks, bidding at the cutoff price would require ₹1,35,600. High Net-Worth Individuals (HNIs) must apply for at least two lots (2,400 shares), amounting to ₹2,71,200.
Indorient Financial Services Ltd is managing the IPO, while Link Intime India Private Ltd serves as the registrar. Alacrity Securities Ltd is the market maker for the issue. This IPO provides investors with an opportunity to invest in the hospitality sector.
Industry Outlook
- India's mid-scale hotel market generated ₹316.3 billion in revenue in 2023 and is expected to grow at a 9% CAGR, reaching ₹530.1 billion by 2029, driven by rising domestic travel and increasing disposable incomes.
- The growing demand for competitively priced branded hotels, especially in Tier 2 and Tier 3 cities, is boosting the mid-scale segment, attracting both domestic and international hotel brands.
- Travelers now prefer affordable stays with modern amenities and enhanced services, pushing mid-scale hotels to upgrade their offerings beyond basic accommodation.
Grand Continent Hotels IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Funds will be used to prepay or repay certain outstanding loans, reducing financial liabilities and improving financial stability.
- Investment in expanding hotel properties across India to cater to growing demand in the mid-scale hospitality sector.
- The remaining funds will be used for general corporate purposes.
About Grand Continent Hotels Limited
Grand Continent Hotels Private Limited, established in Bengaluru, Karnataka, on November 11, 2011, operates in the mid-scale hotel sector, catering to Indian middle-class guests and business travelers. The company launched its first hotel, a 24-room property on Bannerghatta Road, Bengaluru, in April 2016. Currently, it manages 16 operational hotel properties with a total of 753 keys across Karnataka, Tamil Nadu, Goa, Andhra Pradesh, and Telangana.
The company follows an asset-light model with most properties under direct lease agreements, while two properties in Bengaluru are owned. It also operates under franchise agreements with Sarovar Hotels and Royal Orchid Associated Hotels, leveraging their brand presence for sales and marketing. Bengaluru remains a key market, accounting for 71.43% of total hotel properties and 60.39% of revenue as of September 30, 2024.
Grand Continent Hotels categorises its properties into economy, mid-priced, and upper mid-priced segments based on average daily rates and amenities offered. With an occupancy rate of 67.69% for the six months ending September 2024, the company has demonstrated stable growth.
India’s hospitality sector is witnessing increased demand due to growing domestic tourism, rising business travel, and improved infrastructure. Grand Continent Hotels is strategically positioned to benefit from this trend by expanding its presence in high-demand locations while maintaining a strong focus on guest experience and operational efficiency.
How To Check the Allotment Status of Grand Continent Hotels IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How To Apply for the Grand Continent Hotels IPO Online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Grand Continent Hotels IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Grand Continent Hotels IPO
Registered office: S No. 245/1A/1B, Venpursham Village, Veeralapakkam, Thiruporur, Chengalpattu, Mamallapuram, Kanchipuram, Tirukalikundram - 603110, Tamil Nadu, India.
Phone: 080 4165 6491
E-mail: cs@grandcontinenthotels.com
Grand Continent Hotels IPO Reservation
|
Investor Category |
Shares Offered |
|
Anchor Investor Shares |
18,73,200 (28.43%) |
|
Market Maker Shares |
3,30,000 (5.01%) |
|
QIB Shares |
12,49,200 (18.96%) |
|
NII (HNI) Shares |
9,37,200 (14.22%) |
|
Retail Shares |
21,87,600 (33.2%) |
Grand Continent Hotels IPO Lot Size
|
Application |
Lots |
Shares |
Amount |
|
Retail (Min) |
1 |
1,200 |
₹1,28,400 |
|
Retail (Max) |
1 |
1,200 |
₹1,35,600 |
|
HNI (Min) |
2 |
2,400 |
₹2,71,200 |
Grand Continent Hotels IPO Anchor Investors Details
|
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 |
Grand Continent Hotels IPO Promoter Holding
Mr. Ramesh Siva and Mrs.Vidya Ramesh are the promoters of the company.
|
Share Holding Pre-Issue |
75.02% |
|
Share Holding Post Issue |
- |
Note: Equity dilution will be determined by subtracting the Share Holding Post Issue from the Share Holding Pre Issue.
Key Performance Indicators for Grand Continent Hotels IPO
|
KPI |
Value |
|
RoE (%) |
25 |
|
RoCE (%) |
17 |
|
Debt/Equity |
1.13 |
|
PAT Margin |
13.05 |
Grand Continent Hotels IPO Prospectus
Grand Continent Hotels IPO Registrar and Lead Managers
Grand Continent Hotels IPO Lead Managers
- Indorient Financial Services Limited
Registrar for Grand Continent Hotels IPO
Link Intime India Private Limited
- Contact Number:+91-22-4918 6270
- Email Address: grandcontinent.ipo@linkintime.co.in
Grand Continent HotelsIPO Registrar
Financial Performance of Grand Continent Hotels Limited
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue from Operation (in ₹ lakh) | 3,123.69 | 1,680.15 |
| Profit After Tax (PAT) (in ₹ lakh) | 407.77 | 103.49 |
| EPS (Earnings per Share in ₹) | 2.54 | 0.70 |
| Total Borrowings (in ₹ lakh) | 3,496.26 | 3,706.58 |
| Return on equity (in times) | 0.25 | -67.56 |
| Net debt (in ₹ lakh) | 2,653.19 | 3,661.48 |
| EBITDA (in ₹ lakh) | 986.48 | 625.31 |
Know before investing
Strengths
8Grand Continent Hotels offers premium mid-priced hospitality with quality service.
Strategically located hotels cater to business and leisure travellers efficiently.
Proven asset management boosts occupancy, revenue, and cost efficiency.
Refurbishment of Bengaluru property raised ARR from ₹2,000 to ₹3,200.
Experienced leadership drives growth with 13+ years in hospitality.
Expansion plans target 18 hotels with 850+ rooms by 2024.
Strong industry growth backed by India’s 10.4% GDP rise in 2024.
Smart tech adoption enhances operations via cloud-based hotel management systems.
Risks
8Equity shares were issued in the last 12 months below offer price.
Most hotel properties are on lease or license, posing renewal risks.
Some agreements have stamping or registration issues, affecting legal enforcement.
Franchise agreements with Sarovar/Royal Orchid are non-exclusive, increasing competition.
Business is concentrated in Bengaluru and Tirupati, raising regional risk exposure.
Strict regulations on safety, environment, and taxation may impact operations.
Joint Ventures and Group Companies may compete, creating conflicts of interest.
Changing travel preferences and alternative accommodations may reduce hotel demand.
Peer Comparison of Grand Continent Hotels Limited
| Company Name | EPS (Basic) | NAV (per share in ₹) | P/E (x) | RoNW (%) |
|---|---|---|---|---|
| Grand Continent Hotels Limited | 2.54 | 75.17 | - | 26.67 |
| Lemon Tree Hotels Limited | 1.88 | 19.52 | 67.79 | 12.28 |
| Sayaji Hotels Limited | 8.18 | 90.49 | 32.38 | 7.04 |
| Royal Orchids Hotels Limited | 17.68 | 75.88 | 21.99 | 25.09 |
