Grand Continent Hotels Ltd IPO on March 20, 2025

Published On: 20/03/20252.6 min read

​Grand Continent Hotels Ltd, a prominent player in India’s mid-market hospitality sector, has launched its Initial Public Offering (IPO) today, March 20, 2025. This IPO presents a significant opportunity for investors interested in the latest IPO in India.

GRAND CONTINENT​Company Overview

Established in 2011, Grand Continent Hotels Ltd operates 19 properties across six major Indian cities, offering over 900 rooms. The company caters to both business and leisure travelers, focusing on providing quality service at competitive prices. Each hotel is strategically located in prime urban areas to ensure accessibility and convenience.

IPO Timeline

  • Issue Opening Date: March 20, 2025​
  • Issue Closing Date: March 24, 2025​
  • Allotment Date: March 25, 2025​
  • Refund Initiation: March 26, 2025​
  • Shares Credit to Demat Accounts: March 26, 2025​
  • Listing Date: March 27, 2025​

Price Band

The IPO price band is set between ₹107 and ₹113 per equity share of face value ₹10 each. The floor price is 10.7 times the face value, and the cap price is 11.3 times the face value. ​

Lot Size

Investors can bid for a minimum lot size of 1,200 equity shares. Therefore, the minimum investment amount is ₹128,400. ​

Key Dates

  • Issue Opens: March 20, 2025​
  • Issue Closes: March 24, 2025​
  • Basis of Allotment: March 25, 2025​
  • Initiation of Refunds: March 26, 2025​
  • Credit of Shares to Demat Account: March 26, 2025​
  • Listing Date: March 27, 2025​

Financials

Grand Continent Hotels Ltd has demonstrated strong financial growth in recent years:​

  • FY22: Revenue of ₹6.03 crore with a net loss of ₹0.79 crore​
  • FY23: Revenue of ₹17.05 crore with a net profit of ₹1.05 crore​
  • FY24: Revenue of ₹31.53 crore with a net profit of ₹4.12 crore​
  • H1 FY25: Revenue of ₹31.86 crore with a net profit of ₹6.81 crore​

The company’s Profit After Tax (PAT) margin has improved significantly, reaching 19.53% in H1 FY25.

Strengths

  • Strategic Locations: Hotels situated in prime urban areas catering to both business and leisure travelers.​
  • Asset-Light Model: Primarily operates leased properties, reducing capital expenditure.
  • Franchise Partnerships: Collaborations with brands like Sarovar Hotels and Royal Orchid enhance market presence.​
  • Experienced Management: Led by professionals with extensive industry expertise.​

Risks

  • Lease Dependencies: Reliance on long-term lease agreements; non-renewal could impact operations.​
  • Geographical Concentration: Significant revenue from Bengaluru; regional downturns could affect profitability.​
  • Market Competition: Faces intense competition in the mid-scale hospitality segment.​
  • Economic Sensitivity: Hospitality industry is vulnerable to economic cycles and external events affecting travel.​

IPO Anchor Investors Details

As of now, specific details about anchor investors have not been disclosed. Investors are advised to refer to the company’s official communications for updates.​

IPO Promoter Holding Details

The promoter holding details are as follows:​

Promoter Name Pre-Issue Holding Post-Issue Holding
Ramesh Siva 75.02% To be updated

IPO Grey Market Premium (GMP)

As of March 20, 2025, the Grey Market Premium (GMP) for Grand Continent Hotels Ltd’s IPO is ₹0, indicating that shares are trading at their issue price with no premium or discount in the grey market. ​

Final Thoughts

Grand Continent Hotels Ltd’s IPO offers investors an opportunity to participate in the growth of a company with a strong presence in India’s mid-scale hospitality sector. The company’s strategic locations, asset-light model, and robust financial performance are positive indicators. However, potential investors should consider the risks associated with lease dependencies, geographical concentration, and market competition. Conducting thorough due diligence and consulting with financial advisors is recommended before making investment decisions.

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