Jungle Camps India is a premium hospitality company with a collection of four award-winning wildlife lodges set in the pristine wilderness, designed to offer travelers an immersive experience in nature. The company is focused on delivering a luxury travel experience with a focus on wildlife conservation and connecting guests with India's natural heritage. The company's bespoke wildlife programs are crafted by safari specialists to create restorative and memorable experiences for those seeking extraordinary simplicity in their travels.

Jungle Camps India IPO Details

The Jungle Camps India IPO is a Book Built Issue amounting to ₹29.42 crores, with the entire issue consisting of a fresh issue of 40.86 lakh shares. The IPO opens for subscription on December 10, 2024, and closes on December 12, 2024. The allotment date is expected to be finalized on December 13, 2024, with a listing date on or about December 17, 2024 on the BSE SME platform.

The price band for the IPO is set between ₹68 to ₹72 per equity share, with a market capitalization of ₹111.58 crores at the upper price band of ₹72. The lot size is 1,600 shares, meaning retail investors need to invest a minimum of ₹1,15,200. High-net-worth individuals (HNIs) need to apply for 2 lots (3,200 shares), amounting to ₹2,30,400.

Grey Market Premium and Listing Gains

The Grey Market Premium (GMP) of the Jungle Camps India IPO has been showing positive trends. As of December 4, 2024, the GMP stands at ₹44, which suggests a potential listing gain of around 60.93%. This indicates strong investor interest in the IPO, with the expected listing price reaching ₹116, higher than the issue price of ₹72. However, it’s important to note that GMP is an unofficial market indicator and should be taken with caution as it reflects demand and supply dynamics in the unorganized market.

Jungle Camps India Financial Performance

For the fiscal year 2024, Jungle Camps India reported revenues of ₹1,810.61 lakhs, a significant growth from ₹1,124.55 lakhs in 2023 and ₹781.17 lakhs in 2022. The EBITDA for the fiscal year 2024 stood at ₹668.45 lakhs, showing considerable improvement from ₹165.71 lakhs in 2023 and ₹189.18 lakhs in 2022. The profit after tax (PAT) for FY2024 was ₹359.16 lakhs, a substantial rise from ₹44.92 lakhs in FY2023 and ₹72.86 lakhs in FY2022.

The pre-issue EPS is ₹7.82, and the post-issue EPS is ₹2.32. The pre-issue P/E ratio is 9.21x, while the post-issue P/E ratio is 31.07x, which is lower than the industry P/E ratio of 121.98x, suggesting that the IPO is fairly priced based on the company’s growth and industry dynamics. The Return on Capital Employed (ROCE) for FY2024 stands at 24.75%, and the Return on Equity (RoE) is 20.01%, indicating strong profitability and efficient capital use.

Objectives of the IPO

The company plans to use the funds raised from the IPO for the following objectives:

1. Capital Expenditure for Sanjay Dubri National Park Project – ₹700 lakh for developing the project in Madhya Pradesh.
2. Renovation of Pench Jungle Camp – ₹350 lakh for enhancing the existing resort at Pench National Park.
3. Investment in Madhuvan Hospitality Pvt. Ltd. – ₹1,150 lakh for the Mathura Hotel Project.
4. General Corporate Purposes – Funds for working capital and other corporate activities.

Investment Recommendation

With the Grey Market Premium (GMP) indicating a 60.93% potential listing gain, the Jungle Camps India IPO appears attractive to risk-taking investors seeking short-term gains. The company’s financial growth in recent years, along with strong profitability metrics, makes it a viable option for those willing to take on some risk for listing gains. However, given the relatively high post-issue P/E ratio, investors looking for long-term investments may want to assess the company's post-IPO performance and market sentiment.

Risk-averse investors should exercise caution, as the strong listing gains projected by the GMP may not guarantee long-term value. For those interested in short-term trading or looking to capitalize on the expected listing gains, this IPO presents an opportunity, but the long-term prospects remain contingent on the company’s ability to execute its projects successfully.

In conclusion, we recommend risky investors to consider applying for the Jungle Camps India IPO for potential listing gains. However, long-term investors should carefully monitor the company’s performance after the listing to assess its growth trajectory.