Jungle Camps India is a distinguished collection of four award-winning lodges located in pristine wildlife sanctuaries, offering immersive wildlife experiences. The company focuses on wildlife conservation and luxury through bespoke safari programs tailored for travelers seeking both adventure and tranquility. By combining nature’s beauty with luxury, Jungle Camps promises an unforgettable experience of the Indian wilderness. The upcoming IPO seeks to raise ₹29.42 crores through the issuance of 40.86 lakh shares, entirely in the form of a Fresh Issue.

IPO Overview

The Jungle Camps India IPO opens for subscription on December 10, 2024, and will close on December 12, 2024. The price band for the IPO is set between ₹68 and ₹72 per equity share. At the upper price band of ₹72, the company’s market capitalization will be ₹111.58 crores. The lot size for the IPO is 1,600 shares, which requires a minimum investment of ₹1,15,200 for retail investors and ₹2,30,400 for High-Net-Worth Individuals (HNIs). The tentative listing date is December 17, 2024, with shares to be listed on the BSE SME platform. KHAMBATTA SECURITIES LIMITED is the Book-Running Lead Manager, while SKYLINE FINANCIAL SERVICES PRIVATE LIMITED is the registrar for the issue.

Grey Market Premium and Subscription

The Grey Market Premium (GMP) of Jungle Camps India IPO has shown promising signs of a potential 60.93% listing gain, with the expected listing price around ₹116 per share based on the latest GMP trend. The GMP, though speculative and not a guaranteed indicator of the final listing price, shows high investor interest. It reflects a significant potential for a positive listing performance, but investors should approach this figure with caution as it is based on informal trading.

Financial Performance and Metrics

Jungle Camps India has shown significant growth in recent years. The company’s revenue from operations stood at ₹1,810.61 lakhs for FY24, reflecting strong business performance. The EBITDA for FY24 was ₹668.45 lakhs, showcasing profitability, while the profit after tax (PAT) for FY24 was ₹359.16 lakhs. Over the previous years, the company’s revenues and profits have consistently grown, confirming its strong operational capability.

The company’s pre-issue Earnings Per Share (EPS) is ₹7.82, and the post-issue EPS is ₹2.32. The pre-issue Price-to-Earnings (P/E) ratio is 9.21x, and the post-issue P/E ratio is 31.07x, significantly lower than the industry P/E ratio of 121.98x. This valuation suggests that the IPO is attractively priced, especially considering the potential for growth and the company's strong return ratios.

Jungle Camps India’s Return on Capital Employed (ROCE) for FY24 is 24.75%, and its Return on Equity (RoE) is 20.01%, both of which indicate efficient use of capital and a solid financial position, making it an appealing investment opportunity.

Use of IPO Proceeds

The proceeds from the Fresh Issue will be used for the following purposes:

1. ₹700 lakhs for capital expenditure towards the development of a new project at Sanjay Dubri National Park, Madhya Pradesh.
2. ₹350 lakhs for renovation of the existing resort, Pench Jungle Camp, at Pench National Park.
3. ₹1,150 lakhs for investment in their subsidiary, Madhuvan Hospitality Private Limited (MHPL), for the development of the Mathura Hotel Project.
4. A portion of the funds will be used for general corporate purposes.

Key Considerations for Investors

Jungle Camps India offers a promising IPO with strong growth potential, particularly in the hospitality and wildlife tourism sector, which has seen increasing demand for immersive and eco-friendly travel experiences. The IPO’s strong GMP and attractive financials suggest potential listing gains, but investors should consider the risks associated with investing in a niche sector like wildlife tourism.

Given the company's established position, attractive valuations, and growth prospects, the Jungle Camps India IPO is recommended for Investors looking for both short-term listing gains and long-term investment opportunities in the eco-tourism space.