The Grand Continent Hotels IPO, structured as a Book-Built Issue, is set to open for subscription from 20 March 2025 to 24 March 2025. This offering aims to raise ₹74.46 Crores, comprising a fresh issue of ₹70.74 Crores and an offer for sale (OFS) of 3,28,800 equity shares (face value: ₹10 each) aggregating ₹3.72 Crores.
With a price band of ₹107 to ₹113 per share, the IPO’s allocation strategy strikes a balance between inclusivity and institutional confidence: 35% reserved for Retail Investors, 50% for QIBs (Qualified Institutional Buyers), and 15% for HNIs (High Net-worth Individuals). This structure underscores its appeal as a strategic entry point into the hospitality sector’s growth narrative.
Financial Momentum Highlights:
- Revenue surged 85% to ₹31.53 Crores in 2024 (up from ₹17.05 Crores in 2023).
- Profits skyrocketed 292% to ₹4.12 Crores in 2024, compared to ₹1.05 Crores in the previous fiscal year.
The allotment is expected to be finalized by 25 March 2025, followed by the anticipated listing on the NSE on 27 March 2025.
Bolstered by its stellar financial performance and a pricing band tailored to attract a diverse investor base, the Grand Continent Hotels SME IPO emerges as a compelling opportunity for those targeting long-term growth in the revitalizing hospitality industry.
Grand Continent Hotels IPO Details
| IPO Open Date: | 20 March 2025 |
| IPO Close Date: | 24 March 2025 |
| Listing Date: | 27 March 2025 |
| Face Value: | ₹10 Per Equity Share |
| IPO Issue Price: | ₹107 to ₹113 Per Share |
| Lot Size: | 1,200 Shares |
| Issue Type: | Book-Built Issue |
| IPO Listing At: | NSE SME |
| Total Issue Size: | 65,89,200 Shares (Approx ₹74.46 Cr.) |
| Fresh Issue: | 62,60,400 Shares (Approx ₹70.74 Cr.) |
| Offer for Sale: | 3,28,800 Equity Shares (Approx ₹3.72 Cr.) |
| Retail Quota: | Not more than 35% |
| QIB Quota: | Not more than 50% |
| NII (HNI) Quota: | Not more than 15% |
Category Reservation Detail Table
| Application Category | Maximum Bidding Limits | Bidding at Cut-off Price Allowed |
|---|---|---|
| Only RII | Up to ₹2 Lakhs | Yes |
| Only NII | Above ₹2 Lakhs | No |
| Only Employee | Up to ₹5 Lakhs | Yes |
| Employee + RII/NII | – Employee limit: Up to ₹5 Lakhs – If applying as RII: Up to ₹2 Lakhs – If applying as NII: Above ₹2 Lakhs | Yes for Employee and RII/NII |
Grand Continent Hotels IPO Market Lot
The minimum market lot for the Grand Continent Hotels IPO is 1,200 Shares, with an application amount of ₹1,35,600.
| Application | Lot Size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 1,200 Shares | ₹1,35,600 |
| Retail Maximum | 1 | 1,200 Shares | ₹1,35,600 |
| S-HNI Minimum | 2 | 2,400 Shares | ₹2,71,200 |
Grand Continent Hotels IPO Dates
The Grand Continent Hotels IPO Subscription will open on 20 March 2025, and close on 24 March 2025. Allotments will be finalized on 25 March 2025, and the shares will be listed on 27 March 2025.
| IPO Open Date: | 20 March 2025 |
| IPO Close Date: | 24 March 2025 |
| Basic of Allotment: | 25 March 2025 |
| Refund: | 26 March 2025 |
| Credit of Shares to Demat Account: | 26 March 2025 |
| IPO Listing Date: | 27 March 2025 |
Grand Continent Hotels IPO Promoters
The following are the promoters of the company:
- Mr. Ramesh Siva
- Mrs. Vidya Ramesh
| Promoter Holding Pre IPO: | 75.02% |
| Promoter Holding Post IPO: | TBA |
About Grand Continent Hotels
Founded in 2011, Grand Continent Hotels is a mid-scale Indian hotel chain catering to business travelers and the middle-class market through its upper-mid, mid-priced, and economy segments. The brand emphasizes affordability without compromising quality, offering value-for-money stays with modern amenities.
Key Highlights
- Presence: Operates 16 hotels (753 keys) across Karnataka (Bengaluru/Mysuru), Tamil Nadu (Hosur), Goa (Anjuna/Morjim), Andhra Pradesh (Tirupati), and Telangana (Secunderabad) as of September 30, 2024.
- Bengaluru Hub: A strong foothold with 10 properties (458 keys), contributing over 60% of total revenue.
- Amenities:
- Well-furnished rooms with workspaces, AC, and premium bedding.
- On-site dining, conference/banquet facilities, and 24/7 customer support.
- Complimentary Wi-Fi, business services, and proximity to transport hubs.
Operations & Partnerships
Grand Continent Hotels employs an asset-light model, focusing on leased properties and joint ventures. It collaborates with brands like Sarovar Hotels and Royal Orchid Hotels for franchise agreements, enhancing sales and marketing reach. The company prioritizes strategic urban locations to serve both leisure and business travelers.
Commitment to Service
Regular service upgrades and benchmarking ensure alignment with evolving guest expectations. With over 650 employees (as of 2024–2025), the chain maintains a balance between streamlined operations and personalized hospitality, cementing its reputation as a reliable choice for comfortable, budget-friendly stays.
Grand Continent Hotels IPO SWOT
Strengths
- Robust Financial Growth: Assets surged from ₹34.37 crore (2022) to ₹73.91 crore (2024), while revenue jumped from ₹6.03 crore to ₹31.53 crore, reflecting strong expansion and operational efficiency.
- Profitability Turnaround: Shifted from a ₹0.79 crore loss (2022) to a ₹4.12 crore profit (2024), with a 13.05% PAT margin, showcasing cost control and revenue conversion capabilities.
- High Returns for Investors: ROE (25%) and RoNW (26.67%) highlight efficient capital utilization and equity returns.
- Prime Urban Locations: 16 hotels in key cities like Bengaluru (10 properties), Hosur, and Goa ensure visibility and cater to business/leisure travelers.
- Experienced Leadership: Headed by Chairman Ramesh Siva, the team brings 20+ years in hospitality, asset management, and real estate.
- Asset-Light Scalability: Leased/JV properties and partnerships with Sarovar/Royal Orchid Hotels enhance reach while minimizing capital risks.
Risks
- Overvaluation Concerns: Pre-IPO P/E ratio of 51.24 (post-IPO 20.67) may deter cautious investors due to premium pricing.
- Debt Exposure: Total borrowings of ₹34.96 crore could strain finances if interest rates rise or cash flows dip.
- Revenue Concentration: 60%+ revenue from Bengaluru and Tirupati increases vulnerability to regional competition or demand shocks.
- Franchise Reliance: Dependency on non-exclusive agreements with Sarovar/Royal Orchid risks brand dilution and contractual disputes.
- Intense Market Competition: Pressure from established chains and alternative accommodations (e.g., homestays) threatens occupancy rates.
- Macroeconomic Sensitivity: Economic slowdowns, policy changes, or tourism declines could directly impact profitability.
Note: Strengths highlight operational agility and financial robustness, while risks emphasize external dependencies and valuation concerns.
Conclusion
Grand Continent Hotels demonstrates strengths like robust financial growth, prime locations, and a scalable asset-light model, positioning it well in India’s expanding mid-scale hospitality sector. However, risks such as high valuations, debt levels, and revenue concentration in specific regions warrant caution.
While its experienced leadership and strategic partnerships provide stability, investors must weigh its growth potential against exposure to market volatility, franchise dependencies, and macroeconomic uncertainties. Balanced due diligence is advised to navigate these opportunities and challenges effectively.
Grand Continent Hotels Financial Report
In 2024, the company recorded a revenue of ₹31.53 crores, up from ₹17.05 crores in 2023, and its profit increased to ₹4.12 crores in 2024 from ₹1.05 crores in 2023.
Amount in Crores (₹)
| Particulars | Sep 2024 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|
| Assets | ₹97.93 | ₹73.91 | ₹42.26 | ₹34.37 |
| Revenue | ₹31.86 | ₹31.53 | ₹17.05 | ₹6.03 |
| Expenses | ₹23.86 | ₹26.01 | ₹15.15 | ₹7.67 |
| EBITDA | ₹11.25 | ₹9.86 | ₹6.25 | ₹2.38 |
| Profit After Tax (PAT) | ₹6.81 | ₹4.12 | ₹1.05 | ₹0.79 |
| Net Worth | ₹40.18 | ₹29.99 | ₹0.59 | ₹1.63 |
| Reserves and Surplus | ₹22.36 | ₹26 | ₹0.42 | ₹2.64 |
| Total Borrowing | ₹40.22 | ₹34.96 | ₹37.07 | ₹34.72 |
Grand Continent Hotels Valuation – FY2024
| KPI (Key Performance Indicator) | Values |
|---|---|
| Return on Equity (RoE): | 25% |
| Return on Capital Employed (RoCE): | 17% |
| EBITDA Margin: | 31.58% |
| PAT Margin: | 13.05% |
| Debt to equity ratio: | 0.88 |
| Return on Net Worth (RoNW): | 26.67% |
| Price to Book Value: | 1.05 |
| Pre IPO EPS (₹): | 2.21 |
| Post IPO EPS (₹): | 5.47 |
| Pre IPO P/E (x): | 51.24 |
| Post IPO P/E (x): | 20.67 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income | Financial Statements |
|---|---|---|---|---|---|---|
| Lemon Tree Hotels | 1.88 | 67.79 | 12.28% | 19.52 | – | Consolidated |
| Sayaji Hotels Limited | 8.18 | 32.38 | 7.04% | 90.489 | – | Consolidated |
| Royal Orchids Hotels Limited | 17.68 | 21.99 | 25.09% | 75.88 | – | Consolidated |
Grand Continent Hotels IPO Objectives
- Repayment and/or prepayment, in full or in part, of certain outstanding borrowings availed by the Company
- Expansion of the Hotel properties in India
- General Corporate Purpose
Grand Continent Hotels SME IPO Review
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Grand Continent Hotels IPO Registrar
MUFG Intime India Private Limited
Phone: +91-22-4918 6270
Email: grandcontinent.ipo@linkintime.co.in
Website: in.mpms.mufg.com/Initial_Offer/public-issues.html
Grand Continent Hotels IPO Lead Managers
Indorient Financial Services Ltd
Grand Continent Hotels Address
Grand Continent Hotels Limited
S No. 245/1A/1B, Venpursham Village,
Veeralapakkam, Thiruporur, Chengalpattu,
Mamallapuram, Kanchipuram, Tirukalikundram-603110
Phone: 080 4165 6491
Email: cs@grandcontinenthotels.com
Website: grandcontinenthotels.com
Grand Continent Hotels IPO FAQs
What is the Grand Continent Hotels IPO?
The Grand Continent Hotels IPO is an SME listing through which the company intends to raise ₹31.84 Crores by issuing equity shares priced between ₹107 to ₹113 each share, and the IPO will be listed on NSE.
When does the Grand Continent Hotels IPO open for subscription?
The Grand Continent Hotels IPO subscription period starts on 20 March 2025 for QIB, NII, and Retail Investors and will close on 24 March 2025.
How is the investor allocation divided in the Grand Continent Hotels IPO?
The allocation is segmented as follows: 50% for QIB, 15% for NII, and 35% for Retail Investors.
How can I apply for the Grand Continent Hotels IPO?
Grand Continent Hotels SME IPO applications can be made online via ASBA through your bank account or UPI via your stockbroker’s platform. Alternatively, you may also apply offline by submitting a form through your stockbroker.
What is the total issue size of the Grand Continent Hotels IPO?
The Grand Continent Hotels IPO issue size is ₹74.46 crores.
What is the Grand Continent Hotels IPO price band?
The Grand Continent Hotels IPO is priced between ₹107 to ₹113 per share.
What is the minimum lot size for the Grand Continent Hotels IPO?
The minimum bid requires purchasing 1,200 shares, which amounts to ₹1,35,600.
When is the Grand Continent Hotels IPO allotment date?
Allotment for the Grand Continent Hotels IPO is scheduled for 25 March 2025.
When will the Grand Continent Hotels IPO be listed on the stock exchanges?
The Grand Continent Hotels IPO will be listed on NSE on 27 March 2025.
Note: The Grand Continent Hotels SME IPO price band and dates are officially announced. (The Grand Continent Hotels IPO GMP details will be added to the IPO GMP page once they become available.)