Jungle Camps India IPO Overview

Jungle Camps India, a renowned collection of wildlife lodges offering immersive safari experiences, is launching an Initial Public Offering (IPO). The company, known for its focus on wildlife conservation and luxury eco-tourism, is aiming to raise ₹29.42 Crores through the IPO, consisting entirely of a fresh issue of 40.86 Lakh shares. The IPO will open on December 10, 2024, and close on December 12, 2024. The tentative listing date for the shares is December 17, 2024.

Key Details of Jungle Camps India IPO

• IPO Price Band: ₹68 to ₹72 per equity share
• Market Capitalization at Upper Band: ₹111.58 Crores
• Lot Size: 1,600 shares (minimum investment of ₹1,15,200 for retail investors)
• Listing Date: Expected on December 17, 2024 on the BSE SME segment.
• Subscription Period: December 10, 2024 to December 12, 2024

The book-running lead manager for the IPO is KHAMBATTA SECURITIES LIMITED, and Skyline Financial Services Private Limited will act as the registrar.

Jungle Camps India IPO Grey Market Premium (GMP)

As of now, the Grey Market Premium (GMP) for Jungle Camps India IPO stands at ₹14, which indicates a potential 19% listing gain based on its current valuation. However, Grey Market Premium is an unofficial metric based on unregulated transactions and should be considered with caution.

Objectives of the Jungle Camps India IPO

The fresh issue proceeds will be used for the following objectives:

1. Capital Expenditure: ₹700 Lakhs for the project development at Sanjay Dubri National Park, Madhya Pradesh.
2. Renovation: ₹350 Lakhs for the Pench Jungle Camp at Pench National Park, Madhya Pradesh.
3. Investment in Subsidiary: ₹1,150 Lakhs for Madhuvan Hospitality Private Limited to fund the Mathura Hotel Project.
4. General Corporate Purposes.

Financial Performance and Valuation

The company has shown consistent growth in its revenue and profit over the past few years:

• Revenue for FY24: ₹1,810.61 Lakhs
• EBITDA for FY24: ₹668.45 Lakhs
• Profit After Tax (PAT) for FY24: ₹359.16 Lakhs

For the Jungle Camps India IPO, the company has a pre-issue EPS of ₹7.82 and a post-issue EPS of ₹2.32. The pre-issue P/E ratio is 9.21x, while the post-issue P/E ratio stands at 31.07x, which is much lower than the industry P/E ratio of 121.98x.

The company’s Return on Capital Employed (ROCE) for FY24 is 24.75%, and Return on Equity (RoE) stands at 20.01%, indicating efficient use of capital and profitability.

IPO Allotment Process

The allotment for Jungle Camps India IPO will be finalized on December 13, 2024, and investors can check the allotment status online by following these steps:

1. Visit the registrar’s IPO allotment status page.
2. Select Jungle Camps India Limited IPO from the dropdown menu.
3. Enter your application number, PAN, or DP Client ID.
4. Submit to view the allotment status.

IPO Review and Investment Recommendation

Despite the consistent revenue growth, Jungle Camps India’s IPO is fully priced, with a pre-issue P/E ratio of 9.21x and post-issue P/E ratio of 31.07x. The GMP of ₹14 indicates a potential listing gain of 19%, suggesting a modest return on investment.

Investors are advised to apply the IPO for immediate listing gains, as the potential returns seem limited given the current market conditions and the company's high valuation. However, it could appeal to investors interested in long-term investment opportunities in the eco-tourism and hospitality sector.