Grand Continent Hotels is launching its initial public offering (IPO) on March 20, 2025, to raise ₹ 74.45 crores, including a fresh issue of ₹ 70.74 crores and an offer for sale of ₹ 3.71 crores. The share price is set in the range of ₹ 107 to ₹ 113 per equity share, and the lot size is 1,200 shares. The subscription will remain open until March 24, 2025, with the allotment expected by March 25, 2025. The company plans to list on the NSE SME with a tentative listing date of March 27, 2025.

Financial Overview

Grand Continent Hotels, catering to the mid-scale hotel sector, operates 16 hotel properties across Karnataka, Tamil Nadu, Goa, Andhra Pradesh, and Telangana, with 753 hotel keys as of September 30, 2024. They aim to provide affordable yet differentiated services, targeting Indian middle-class guests and business travelers.

Key Metrics

• The market capitalization of Grand Continent Hotels at the upper price band of ₹ 113 per share will be ₹ 281.58 crores.
• The company has demonstrated steady financial growth, with revenues increasing from ₹ 602.73 lakh in FY 2022 to ₹ 3,186.32 lakh for the period ending September 2024.
• EBITDA for the same period stood at ₹ 1,126.94 lakh, reflecting a strong operational performance.
• Profit after tax (PAT) for FY 2024 is ₹ 622.37 lakh, showcasing significant growth from previous years.

IPO Details

• Grey Market Premium (GMP) for the IPO is reported at ₹ 17, indicating a listing gain potential of around 19%.
• The pre-issue price-to-earnings (P/E) ratio stands at 44.49x, and the post-issue P/E ratio is 69.06x. The industry P/E ratio is 45x, suggesting the IPO is fully priced based on current market conditions.
• The company's Return on Capital Employed (ROCE) is 18.35%, and the Return on Equity (ROE) stands at 25%.

IPO Objectives

The proceeds from the IPO will be used for the following purposes:

1. ₹ 3,408.08 lakh for the repayment of outstanding borrowings.
2. ₹ 1,679.24 lakh for the expansion of hotel properties.
3. General corporate purposes.

Anchor Investors and Subscription Status

Grand Continent Hotels raised ₹ 21.16 crores from anchor investors at the upper IPO price of ₹ 113 per share. The IPO was subscribed 0.09 times as of 11:00 AM on March 20, 2025. The anchor investor portion was allotted 18,73,200 equity shares.

How to Check Allotment Status

The allotment date for Grand Continent Hotels IPO is March 25, 2025. Investors can check their allotment status online via the registrar’s website by entering their application number, PAN, or DP Client ID.

IPO Review

Based on the company’s financial performance, growth trajectory, and valuation, the IPO appears to be fully priced. The GMP trend of ₹ 17 and the listing gain potential suggest that the IPO may offer attractive returns for risky investors looking to capitalize on short-term gains.

This IPO could appeal to investors looking for exposure to the Indian hospitality sector, especially those interested in the mid-scale hotel segment. However, due to its high P/E ratio and the GMP, investors should consider their risk appetite before subscribing.

The Upcoming IPOs in this week and coming weeks are Arisinfra Solutions Limited,Rapid Fleet Management Services, Active Infrastructures Limited, Desco Infratech Limited, ATC Energies System Limited, Shri Ahimsa Naturals Limited.

The Current active IPO are Grand Continental Hotels.

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