Grand Continent Hotels IPO: GMP, Price, Date & Details

Grand Continent Hotels IPO-Complete Overview

Grand Continent Hotels IPO under the SME IPO category is a book build issue of Rs.74.46 Cr by Grand Continent Hotels Limited that was incorporated in 2011. It is an Indian hotel chain. This mid-market property chain has opened 19 hotels in six major Indian cities and provides more than 900 rooms. 

Each hotel caters to an identified catchment area, much sought after urban localities to meet business and leisure travelers' needs. 

Grand Continent Hotels has simplified the customer journey in terms of service delivery. It has easy infrastructure, and is rated value for money on sustained service levels, availability, benchmarking and renewal-alignment of services to guest said ones. 

As of September 30, 2024, the Company and the JV Partner Entities operate 16 hotels with 753 keys across Karnataka (Bengaluru/Mysuru), Tamil Nadu (Hosur), Goa (Anjuna/Morjim), Andhra Pradesh (Tirupati), and Telangana (Secunderabad). 

The company has focused on serving Indian middle-class guests, including business customers, with assorted and comfortable services that at the same time offer value-for-money propositions. 

Some typical features of Grand Continent Hotels are: 

• Well-furnished rooms with comfortable bedding, air conditioning, and work desk facilities.

• Diverse on-site dining options.

• Other Conference and Banqueting arrangements for business meetings and events.

• 24/7 front desk and customer support.

• Complimentary Wi-Fi and business services.

• Easy accessibility to transport hubs and commercial areas.

This Grand Continent Hotels IPO date is on 20 Mar 2025, and its ‘initial public offering’ will end on 24 Mar 2025.

 

Grand Continent Hotels IPO Overview

The Rs.74.46 crore new SME IPO comprises a combination of fresh issue of 62.60 lac Shares (Rs.70.74 Cr) and offer for sale of 3.29 lac Shares (Rs 3.72 Cr).

This upcoming IPO date is from March 20 to March 24, 2025. Grand Continent Hotels share price is Rs.107 to Rs.113 for each Share. 

The expected IPO listing date is Monday, 27 March 2025, and listing at NSE and SME.

Click to open demat account and apply for the IPO.

Company Financial

(Amount in Lac)

 

Cash Flows

(Amount in lac)

 

Keys-wise Revenue Breakdown  

(Amount in lac)

 

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Full or partial repayment and/or prepayment of some outstanding loans obtained by the business.

• Growth of India's hotel properties

• General corporate purposes.
  
  

Click for the IPO application status check.

 

Peers of Grand Continent Hotels Ltd.

 

Evaluation

The Grand Continent Hotels IPO price is Rs.107 to Rs.113 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.2.54 from the last year, the resulting P/E ratio is 44.49x.

Considering the weighted EPS of Rs.1.42 for the last three years, the P/E ratio is 79.58x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 44.89.

In simple words, the P/E ratio of this IPO (44.49x), compared with the industry’s average P/E of 44.89x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths 

• Luxury hospitality services within the price range.

• Prime locations of strategic property areas.

• A proven history of value addition is a powerful statement.

• Well-placed to capitalize from stringh, also through aggressive asset.

• Managed by professionals and experienced with the tailwinds of the industry.

 

IPO’s Weaknesses

• Lease agreements are entered into by GCH for the sites of its hotels. Not being able to renew the leases at all, or on favourable terms would have unfavourable consequences for the operational capacity and the financial results of the company.

• GCH has concentrated revenue in certain geographic locations. The economic downturn combined with non-economic natural disasters, or any other detrimental events in these listed locations, could be harmful to the entire functioning of the company.

• GCH has considerable competition in the mid-scale segment of the hospitality industry in India from a large pool of competitors. GCH’s market share can be improved only with the introduction of differentiated products and services coupled with higher levels of customer satisfaction.

• The hospitality industry is one of the most sensitive to the economic cycle and experiences harsh periods like slow economies, government changes, or political instability, which reduces travel and sightseeing activities, which in turn will adversely affect GCH occupancy levels and profit margins.
  
  

Grand Continent Hotels IPO GMP

IPO GMP today has not started yet as of 17 Mar 2025. Hence, the Grand Continent Hotels limited IPO listing price (estimated) is Rs.113.

Grand Continent Hotels IPO Timetable (Tentative)

The Grand Continent IPO opening date is from March 20 to March 24, 2025, with allotment on March 25, refund initiation on March 26, and listing on March 27, 2025.

 

Grand Continent Hotels IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 65,89,200 Shares (Rs.74.46 Cr).

IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1200 Shares) amounting to Rs.1,35,600 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2400 Shares) amounting to Rs.2,71,200.

 

IPO Reservation (% of Net Issue)

 

Promoters And Management of Grand Continent Hotels Ltd.

• Mr. Ramesh Siva

• Mrs.Vidya Ramesh.
  
  

 

 

IPO Lead Managers

• Indorient Financial Services Ltd.
  
  

Dividend Policy

The company has not paid any dividend in any year.

 

Conclusion

The Grand Continent Hotels IPO is a SME IPO worth Rs.74.46 crore. The company serves both business and leisure travelers and is well-represented in mid-market hotels in several cities. Despite the IPO's reasonable valuation based on industry P/E, lease arrangements and regional concentration pose hazards. Before investing, investors should think about the market competition and the company's potential for growth.

 

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Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Click Here To Stay Updated With The Upcoming IPOs.

 

DISCLAIMER: This blog is NOT any buy or sell recommendation. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in any investment or trading activities.