Grand Continent Hotels Limited, a mid-scale hotel operator, is set to launch its Initial Public Offering (IPO) with a book-built issue of ₹ 74.45 crores. The IPO comprises a fresh issue of 62.60 lakh shares worth ₹ 70.74 crores and an offer for sale (OFS) of 3.28 lakh shares amounting to ₹ 3.71 crores.

• IPO Opening Date: March 20, 2025

• IPO Closing Date: March 24, 2025

• Allotment Finalization Date: March 25, 2025

• Tentative Listing Date: March 27, 2025

• Stock Exchange: NSE SME

• IPO Price Band: ₹ 107 - ₹ 113 per share

• Market Capitalization at Upper Band: ₹ 281.58 crores

• Lot Size: 1,200 shares

• Retail Investment Minimum: ₹ 1,35,600 (1 lot)

• HNI Minimum Investment: ₹ 2,71,200 (2 lots)

IPO Subscription and Grey Market Premium (GMP)

As of 12:00 PM on March 24, 2025, Grand Continent Hotels IPO was subscribed 0.65 times on its final day.

The Grey Market Premium (GMP) for Grand Continent Hotels IPO was last recorded at ₹ 17 per share, indicating an expected listing price of ₹ 130 per share, which is 19% higher than the issue price.

Anchor Investors & Lead Managers

• Funds Raised from Anchor Investors: ₹ 21.16 crores

• Anchor Shares Allocated: 18,73,200 equity shares at ₹ 113 per share

• Book Running Lead Manager: Indorient Financial Services Limited

• Registrar: MUFG Intime India Private Limited

• Market Maker: Alacrity Securities Limited

Utilization of IPO Proceeds

Grand Continent Hotels intends to utilize the IPO proceeds for:

1. Repayment of borrowings - ₹ 3,408.08 lakhs

2. Expansion of hotel properties in India - ₹ 1,679.24 lakhs

3. General corporate purposes

Business Overview

Grand Continent Hotels operates in the mid-scale hotel sector, catering to middle-class Indian travelers and business professionals. As of September 30, 2024, the company operates 16 hotels with 753 keys across:

• Karnataka (Bengaluru/Mysuru)

• Tamil Nadu (Hosur)

• Goa (Anjuna/Morjim)

• Andhra Pradesh (Tirupati)

• Telangana (Secunderabad)

Key Business Highlights

• Bengaluru holds 10 hotels with 458 keys, contributing 71.43% of total hotel properties and 60.39% of revenue.

• Asset-light model: Hotels operate via direct leases, JV partnerships, or ownership models.

• Brand partnerships: Operates under franchise agreements with Sarovar Hotels and Royal Orchid Associated Hotels.

• Total Workforce: 658 employees (as of February 28, 2025).

• Banking Partner: ICICI Bank Limited.

Industry Analysis: India's Mid-Scale Hotel Market

Industry Growth & Market Size

India’s hospitality sector has seen a strong post-pandemic rebound, driven by: ✅ Rising discretionary spending & domestic tourism
✅ Increased corporate travel demand
✅ Large-scale events (weddings, festivals, conferences)

The total branded hotel supply in India stands at 180,000 rooms, forming 44% of the total hotel market. The mid-scale hotel segment accounts for 56% of total room supply, offering a balance of affordability and quality.

Competitive Landscape & Expansion

• Leading domestic players: Bloom Hotels, Fortune Park, Ginger, Lemon Tree, Royal Orchid, Sarovar Hotels, Sayaji Hotels, and Grand Continent Hotels.

• International brands in mid-scale segment: Holiday Inn Express, ibis, Fairfield by Marriott.

• Expansion beyond metros: Tier 2, 3, and 4 cities are emerging growth hubs.

Market Projections

• The Indian mid-scale hotel market generated ₹ 316.3 billion revenue in 2023 and is expected to grow at a CAGR of 9%, reaching ₹ 530.1 billion by 2029.

• Total room supply projected to grow at a CAGR of 5%.

Performance Metrics (2023)

• Average Daily Rate (ADR): ₹ 4,806

• Occupancy Rate: 63%

• Revenue per Available Room (RevPAR): Recovering beyond pre-pandemic levels

Final Thoughts

Grand Continent Hotels IPO presents an opportunity to invest in a high-growth mid-scale hotel segment with an asset-light business model and strong brand partnerships. However, investors should consider factors like subscription levels, industry competition, and financial performance before making an investment decision.

Important Links

• Check Grand Continent Hotels IPO Allotment Status

• Live IPO Subscription Status on NSE

• Anchor Investors List

Note: Market Maker portion is included in the NII reservation, and subscription calculations may vary based on price bands.