Grand Continent Hotels Limited IPO

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The company began its hotel operations with the launch of its first property, the 24-room “Grand Continent Hotel” on Bannerghatta Road, Bengaluru, on April 4, 2016. Since then, the company has expanded its footprint significantly across multiple geographies in South and West India.

As of September 30, 2024, the company, along with its Joint Venture (JV) partner entities, operates a total of 16 hotel properties with a combined inventory of 753 hotel keys spread across key cities and travel destinations, including:
i. Karnataka (Bengaluru and Mysuru),                                        ii. Tamil Nadu (Hosur),
iii. Goa (Anjuna and Morjim),                                                       iv. Andhra Pradesh (Tirupati), and
v. Telangana (Secunderabad).

The company follows an asset-light model, primarily operating under a direct lease model to ensure capital efficiency and scalability. Out of the leased portfolio, two properties are managed under JV partnership agreements, enhancing operational synergy and market reach. Additionally, the company owns two hotel properties, both located in Bengaluru, Karnataka, providing asset-backed value and long-term capital appreciation.

Future Expansion Plans

i. Geographical Diversification :- Expand presence beyond South India to include emerging tourist and business hubs in West and North India.

ii. Digital Transformation :- Leverage digital platforms for booking, marketing, guest feedback, and CRM systems to enhance customer experience.

iii. Increased JV Collaborations :- Partner with local asset owners to scale operations in new cities through shared investment and revenue models.

Objects of the Grand Continent Hotels Limited IPO:

The Company Grand Continent Hotels IPO proposes to utilise the Net Proceeds from the Issue towards the following objects: i. Repayment and/or prepayment, in full or in part, of certain outstanding borrowings availed by the Company, ii. Expansion of the Hotel properties in India, iii. General Corporate Purpose. Total number of shares issue :- i. Fresh issue is 62,60,400 shares, ii. Offer for sale is 3,28,800 shares.
DRHP of Grand Continent Hotels Limited IPO
RHP of Grand Continent Hotels Limited IPO

Grand Continent Hotels Limited IPO Details:

Open Date: Mar 20 2025
Close Date: Mar 24 2025
Total Shares: 65,89,200
Face Value: ₹ 10 Per Equity Share
Issue Size: 74.46 Cr.
Lot Size: 1200 Shares
Issue Price: ₹ 107 - 113 Per Equity Share
Listing At: NSE Emerge
Listing Date: Mar 27 2025

Promoters And Management:

Mr. Ramesh Siva, Promoter and Chairman & Managing Director of the Company, holds a diploma in Hotel Management and Catering Technology from IHM, Madras. With over 21 years of experience in the hospitality industry, including serving as CEO of Sabari Inn Limited, he has been actively involved in the Company’s operations and administration since its inception. Mrs. Vidya Ramesh, Promoter and Whole-Time Director of the Company, holds a B.Sc. in Mathematics from the University of Madras and a Diploma in Advanced Secretarial Course from Datamatics Institute of Management, Madras. She has over 12 years of experience in the hotel management industry and has been associated with the Company since its inception. Ms. Deepthi Shiva is a Non-Executive Non-Independent Director of the Company. She holds a B.Sc. in Visual Communication from the University of Madras and has over 3 years of experience in the hotel management industry. She has been associated with the Company since December 31, 2020.

Financials of Grand Continent Hotels Limited IPO:

In Cr.
Particulars Sep 30, 2024 March 31, 2024 March 31, 2023 March 31, 2022
Total Keys 753 531 329 192
Revenue from Operations 31.83 31.23 16.80 6.02
Growth in Revenue from Operations 84.97% 182.83% 110.40%
EBITDA 11.24 9.86 6.25 2.38
EBITDA Margins 35.32% 31.58% 37.22% 39.56%
PAT 6.22 4.07 1.03 -0.79
PAT Margins 19.53% 12.93% 6.07% -13.16%
D/E Ratio 0.80 0.88 62.34 -21.02
CFOA 7.88 7.21 7.57 0.72

Comparison With Peers:

  1. COMPARISON WITH PEERS






Companies
Revenue
EBITDA Margins
PAT Margins
D/E Ratio
MCap
P/E




Grand Continent Hotels 

(FY 2024)
531 Cr.
31.58%
12.93%
0.88
281.58
69.18*




Lemon Tree Hotels

Limited

(TTM)
1,235 Cr.
49%
17.73%
2.23
10,806 Cr.
60.50




Sayaji Hotels

Limited

(TTM)
132 Cr.
27%
10.60%
0.40
475 Cr.
33.10




Royal Orchids

Hotels

(TTM)
309 Cr.
23%
16.50%
1.02
1,131 Cr.
22.30





*Forward PE is 22.63 on the basis of FY 25 PAT.
                                        

                                    

                                                                                                    

                                        

                                            
Recommendation on Grand Continent Hotels Limited IPO:

                                            
Review and Recommendation of Grand Continent Hotels IPO by team IZ is 4/10.

                                        

                                    

                                                                
                                
                                                                 

                                    

                                                                                    

                                                
Lead Manager of Grand Continent Hotels Limited IPO:

                                            
 
    
                                                                                                        
  1. Indorient Financial Services
    2. 
                                                        
 

                                

                                                                
                                 
                                                                  

                                    

                                                                                    

                                                
Registrar of Grand Continent Hotels Limited IPO:

                                            
 
    
                                                                                                        
  1. Link Intime India Private Limited
    2. 
                                                        
 

                                

                                                            

                                

                            

                                                                  

                                        

                                            
Company 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: https://grandcontinenthotels.com/
                                        

                                    

                                                              
                                                                   

                                        

                                            
                                        

                                    

                                                                 
                                                            

							
                            

                                

                                    

                                                                            

                                

                            

                            
							
                            

                            

                            

                                

                                    

                                        

                                    

                                

                            

                            
                            

                                

                                
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