Grand Continent Hotels Limited, an Indian mid-market hotel chain, opened its IPO for subscription on March 20, with the issue running until March 24. The IPO has been subscribed 9% on the first day, with NIIs leading at 36%. The company plans to utilize the proceeds for loan repayment and expansion.
Grand Continent Hotels Limited, a mid-market hotel chain in India, opened its Initial Public Offering (IPO) for subscription on March 20, with the issue set to close on March 24. The Bengaluru, Karnataka-based company operates 19 hotels across six major Indian cities, offering over 900 rooms and catering to both business and leisure travelers. The IPO, priced between ₹107 and ₹113 per share, has been subscribed 9% on the first day, with Non-Institutional Investors (NIIs) leading at 36%, while the retail portion saw a 3% subscription.
IPO Details and Subscription Status
Grand Continent Hotels’ IPO includes a fresh issue of shares worth ₹70.74 crore and an offer for sale (OFS) of up to 3,28,800 equity shares by a promoter selling shareholder. The company has received bids for 4,06,800 shares against the 43,86,000 shares available for offer. Investors can place bids for a minimum of 1,200 equity shares and in multiples thereof.
The primary objectives of the IPO include repayment of existing loans, expansion of hotel properties across India, and general corporate purposes. The listing on NSE Emerge is expected to enhance the company’s brand reputation and market visibility.
Competitor Comparison and Market Outlook
Grand Continent Hotels competes with other publicly listed hotel chains such as Lemon Tree Hotels Ltd (P/E ratio: 67.79), Sayaji Hotels Ltd (P/E ratio: 32.38), and Royal Orchid Hotels Ltd (P/E ratio: 21.99). The hospitality sector in India has witnessed steady growth, with mid-market hotel chains benefiting from increasing domestic and international travel.
Grey Market Premium (GMP) Status
As of March 20, the grey market premium (GMP) for Grand Continent Hotels IPO stands at ₹0, indicating that shares are trading at the issue price of ₹113 without any premium or discount in the grey market.
With the IPO open for subscription until March 24, market participants will be closely monitoring further investor interest and subscription trends.
