Grand Continent Hotels has officially launched its Initial Public Offering (IPO) for subscription starting today, March 20, and will remain open until March 24. The IPO price range has been set between ₹107 and ₹113 per equity share, with a face value of ₹10. Investors can bid for a minimum of 1,200 shares, with additional bids accepted in multiples of this amount.
About Grand Continent Hotels
Established in 2011, Grand Continent Hotels Limited is a prominent player in the Indian hospitality sector, focusing on mid-market accommodations. The hotel chain boasts 19 properties across six major cities in India, with over 900 rooms available for guests. Each hotel is strategically positioned in key urban locations, catering to both business travelers and leisure guests.
Customer-Centric Approach
Grand Continent Hotels is dedicated to enhancing the guest experience through:
- Seamless service interactions
- User-friendly facilities
- Value for money
The chain prioritizes consistent service quality and regularly updates its offerings to align with changing guest preferences.
Competitive Landscape
According to the Red Herring Prospectus (RHP), Grand Continent Hotels faces competition from various publicly listed companies, including:
- Lemon Tree Hotels Ltd (P/E ratio of 67.79)
- Sayaji Hotels Ltd (P/E ratio of 32.38)
- Royal Orchids Hotels Ltd (P/E ratio of 21.99)
Subscription Status of the IPO
As of the first day of its launch, the Grand Continent Hotels IPO has recorded a subscription rate of 9%. The retail segment has seen a 3% subscription, while the Non-Institutional Investor (NII) segment is at 36%. As of 11:09 IST, the company has received bids for 406,800 shares against a total of 4,386,000 shares available.
Key IPO Highlights
The IPO features a fresh share issue worth up to ₹70.74 crore alongside an offer for sale (OFS) of 328,800 equity shares from a selling promoter. The proceeds from the IPO will be utilized for several strategic purposes, including:
- Repayment of existing loans
- Expansion of hotel properties within India
- General corporate needs
Additionally, the company anticipates that its listing on NSE Emerge will enhance its visibility and strengthen its brand reputation among both existing and potential customers, while also creating a public market for its equity shares.
Current Grey Market Dynamics
As of today, the Grey Market Premium (GMP) for the Grand Continent Hotels IPO stands at ₹0, indicating that shares are currently trading at their issue price of ₹113, without any premium or discount in the grey market. The GMP reflects the investors’ willingness to pay more than the IPO price, signaling market sentiment.
Keep an eye on the latest updates regarding the Grand Continent Hotels IPO, and don’t forget to check out the status for other IPOs like Divine Hira Jewellers and Paradeep Parivahan for comprehensive insights.
