Mumbai: The initial public offering (IPO) of Grand Continent Hotels opens for subscription today, March 20, 2025. The company plans to raise Rs 74.4 crore through the public issue. This includes a fresh issue of 62.4 lakh equity shares and an offer for sale (OFS) of 3.28 lakh shares by promoter Ramesh Siva.
Price Band and Lot Size
Grand Continent Hotels has set the price band at Rs 107 to Rs 113 per share. Investors must bid for at least 1,200 shares and in multiples thereafter. A retail investor needs a minimum of Rs 1,28,400 to apply for one lot. High net-worth individuals (HNIs) can bid for at least two lots, which amounts to Rs 2,71,200.
Grey Market Premium (GMP)
Ahead of the IPO launch, Grand Continent Hotels’ unlisted shares were trading at Rs 113 per share in the grey market. This indicates a stable demand for the stock.
Important Dates for IPO
The IPO will remain open for subscription until March 24, 2025. The allotment of shares is expected to be finalized on March 25. Investors who get shares will receive them in their demat accounts by March 26. Refunds for unsuccessful applicants will also be processed on the same day. The company is expected to list on the NSE SME platform on March 27, 2025.
Lead Managers and Registrar
MUFG Intime India is handling the share allotment as the registrar. Indorient Financial Services is the sole book-running lead manager for the IPO.
Purpose of the IPO
The company plans to use Rs 34.08 crore from the net proceeds to repay outstanding loans. Another Rs 16.79 crore will be used for expanding hotel properties in India. The remaining funds will be used for general corporate purposes.
About Grand Continent Hotels
Grand Continent Hotels operates in the mid-scale hotel segment, including upper-mid, mid-priced, and economy hotels. The company currently runs 16 hotels with 753 keys across Bengaluru, Hosur, Anjuna, Tirupati, and Secunderabad. Its occupancy rate was 72.33% for the six-month period ending September 30, 2024.
Financial Performance
For the six months ending September 30, 2024, the company reported a revenue of Rs 31.83 crore and a profit after tax of Rs 6.22 crore. In FY24, its revenue stood at Rs 31.23 crore, an 85.9% rise from Rs 16.80 crore in FY23.
