Grand Continent Hotels Ltd IPO
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Grand Continent Hotels Ltd IPO Details
Details
| Total Shares Offered | Offer to Public | Retail Max (Shares) | Pre Issue Promoters Holding | Exchange | Issue size |
|---|---|---|---|---|---|
| ₹ 65.89 L | ₹ 3.29 L | ₹ 21.88 L | ₹ 139.97 L | NSE | ₹ 74.46 Cr |
| IPO Open Date | Close Date | Lot Size | Min Investment | Issue Type | Listing Date |
| 20 Mar, 25 | 24 Mar, 25 | 1200 | ₹ 1,28,400 | Book Building - SME | 27 Mar, 25 |
Grand Continent Hotels Ltd IPO Dates
Details
| Sector | Type |
|---|---|
| Sector | Hotels |
| Sub Sector | NA |
| Issue Type | Book Building - SME |
Subscription Status
*Values are in Lakhs
| Investor Type | Subscription Times | Shares Offered* | Shares Bid* |
|---|---|---|---|
| QIB | 0.28x | 3122400 | 883200 |
| NII | 0.49x | 937200 | 459600 |
| Retail | 0.42x | 2187600 | 927600 |
| Employee | 0.8x | 12000 | 9600 |
| Total | 0.35x | 6589200 | 2280000 |
Subscription Status
Investor Type
QIB
NII
Retail
Employee
Total
*Values are in Lakhs
Grand Continent Hotels Ltd Financial Status
Income Statement
Balance Sheet
| Particulars (in Rs. Crores) | FY23 | FY22 | FY21 |
|---|---|---|---|
| Revenue from operations | 31.24 | 16.80 | TBA |
| EBITDA | 6.99 | 3.88 | TBA |
| PAT | 5.81 | 1.84 | TBA |
| Total Assets | 13.81 | 1.70 | TBA |
| Share Capital | 3.99 | 1.01 | TBA |
| Total Borrowings | 35.14 | 25.35 | TBA |
| Operating Activities (Net Cash) | 6.51 | 2.86 | TBA |
| Investing Activities (Net Cash) | -4.31 | 0.18 | TBA |
| Financing Activities (Net Cash) | 35.14 | 25.35 | TBA |
| Net Cashflow | 8.22 | 0.29 | TBA |
Particulars (in Rs. Crores)
Revenue from operations
EBITDA
PAT
Total Assets
Share Capital
Total Borrowings
Operating Activities (Net Cash)
Investing Activities (Net Cash)
Financing Activities (Net Cash)
Net Cashflow
About Grand Continent Hotels Ltd
Grand Continent Hotels Limited was originally incorporated as a private limited company under the Companies Act, 1956 in the name and style of Grand Continent Hotels Private Limited pursuant to certificate of incorporation dated November 11, 2011 issued by the RoC, Chennai, Tamil Nadu bearing Corporate Identity Number U55101TN2011PTC083100. Subsequently, the Company was converted into public limited company pursuant to special resolution passed in the EGM held on May 27, 2024, and consequently, the name of the Company was changed to Grand Continent Hotels Limited and a fresh certificate of incorporation dated August 30, 2024 consequent upon conversion from private company to public company was issued by RoC, Central Processing Centre bearing CIN U55101TN2011PLC083100.
India's mid-scale hotels market generated a revenue of INR 316.3 billion in 2023 and is projected to expand at a CAGR of 9.0% from 2023 to 2029, reaching an estimated revenue of INR 530.1 billion by the end of the forecast period. Mid-Scale Hotels constitute approximately 56.0% of the total room supply, signifying their dominance in catering to a broad spectrum of business and leisure travelers. As of 2023, the mid-scale hotels market in India offered an estimated 230,000 rooms across both branded and independent properties. This supply is projected to grow at a CAGR of 5.0% from 2023 to 2029, driven by an increasing number of hotel developments and expansions within this category.
Grand Continent Hotels Limited operates in the mid-scale hotel sector, consisting of the upper-mid priced, mid-priced and economy hotel segments. The Company seeks to cater to Indian middle-class guests and business travellers and to deliver differentiated yet superior service offerings, with a value-for-money proposition. The Company has 16 operational hotels and operates a total of 753 keys as of September 30, 2024 across states of Karnataka (Bengaluru), Tamil Nadu (Hosur), Goa (Anjuna), Andhra Pradesh (Tirupati) and Telengana (Secunderabad). Its adjusted occupancy across all properties is 72.33% for the six months period ended September 30, 2024, 75.17% for FY 2024, 79.00% for FY 2023 and 61.90% for FY 2022.
Peer Comparison:
- Lemon Tree Hotels Ltd
- Sayaji Hotels Ltd
- Royal Orchid Hotels Ltd
Grand Continent Hotels Ltd IPO Key Points
Strengths
- Lowest Entry Cost per Key: Over the years, the Company has perfected its model to set up rooms at the lowest cost in a timely manner, managing approximately 40 to 100 rooms per hotel.
- High Occupancy Rates: The Company collaborates with a wide range of marketing partners and establishes direct relationships with corporate clients, leading to high occupancy rates and reasonable per-room profitability.
- Cost Control on Room Operating Expenses: The Company has developed a unique model to ensure low costs for operating and servicing rooms and restaurants, while maintaining guest comfort and convenience.
Risk
- The company has issued Equity Shares during the preceding twelve months at a price which may be below the Offer Price.
- Majority of its properties are on long lease or license. If the company is unable to comply with the terms of the lease or license agreements, renew its agreements or enter into new agreements on favorable terms, the company business, results of operations and financial condition and cash flows may be adversely affected.
- Some of its agreements may be under stamped or inadequately stamped or unregistered and if any financial or judicial implication arises out of the same it may have an adverse effect on the Company's business and reputation.
Strategy
- Developing and expanding its hospitality assets.
- Improving operational efficiency to achieve superior performance.
- Optimise capital efficiency through the adoption of its asset light model with an optimal portfolio of owned and leased hotels and to further strengthen, develop and expand its existing brand.
- Lowest Entry Cost per Key: Over the years, the Company has perfected its model to set up rooms at the lowest cost in a timely manner, managing approximately 40 to 100 rooms per hotel.
- High Occupancy Rates: The Company collaborates with a wide range of marketing partners and establishes direct relationships with corporate clients, leading to high occupancy rates and reasonable per-room profitability.
- Cost Control on Room Operating Expenses: The Company has developed a unique model to ensure low costs for operating and servicing rooms and restaurants, while maintaining guest comfort and convenience.
How To Apply for Grand Continent Hotels Ltd IPO Online?
Step 1:
Log in to the BlinkX stock market app and click ‘IPO’ in the Xplore section.
Step 2:
From the list of open IPOs, select the IPO you want to invest.
Step 3:
Go through the IPO details like lot size, price band, about the company, etc.
Step 4:
Click ‘Apply IPO’ to apply and enter the number of lots and bidding price along with your UPI ID.
Step 5:
Confirm your bid and accept the payment mandate sent to your UPI App for completing the IPO application.
