Grand Continent Hotels IPO Day 2; subscription rises 35%, GMP remains flat

Grand Continent Hotels IPO subscription status: The initial public offering (IPO) of Grand Continent Hotels, which opened for public subscription yesterday, March 20, 2025, has so far received a muted response from investors. The SME offering, valued at ₹74.46 crore, was subscribed to nearly 35 per cent till around 10:54 am, on March 21.  Among the individual categories, the quota reserved for the Qualified Institutional Buyer (QIB) has seen the highest demand at 71 per cent. This is followed by the retail investors, and Non-Institutional Investors (NIIs), who have subscribed to the category reserved for them by 26 per cent and 0.1 per cent, respectively.

 

 

Grand Continent Hotels IPO details 

Grand Continent Hotels IPO comprises a fresh issue of 6.26 million equity shares, and an offer for sale (OFS) with promoter Ramesh Siva divesting up to 0.33 million equity shares.

 

The public offering is available with a price band of ₹107-113 per share, and a lot size of 1,200 shares. Investors can bid for a minimum of 1,200 shares and in multiples thereof. At the upper end, a retail investor would require a minimum of ₹1,35,600 to bid for one lot of 1,200 shares of Grand Continent Hotels IPO. For a Net-Worth Individual (HNI), the minimum investment amount is ₹2,71,200 for a minimum of two lots of 2,400 equity shares.

 

Grand Continent Hotels IPO timeline

  The three-day subscription window to bid for Grand Continent Hotels IPO is likely to conclude on Monday, March 24, 2025. Following that, the basis of allotment of Grand Continent Hotels IPO shares is likely to be finalised on Tuesday, March 25, 2025. The successful allottees can expect the company's shares to be credited into their demat account by Wednesday, March 26, 2025.

 

Shares of Grand Continent Hotels are slated to list on the NSE SME on Thursday, March 27, 2025.

 

Grand Continent Hotels IPO grey market premium (GMP) 

The unlisted shares of Grand Continent Hotels were trading flat at ₹113 apiece, which is also the upper end of the IPO price, revealed sources tracking unofficial market activities. Thus, the grey market premium (GMP) for Grand Continent Hotels IPO remains nil as of Friday, March 21.

 

Grand Continent Hotels IPO registrar, lead manager 

Link Intime India serves as the registrar for the issue, while Indorient Financial Services acts as the sole book-running lead manager.

 

Grand Continent Hotels IPO objective 

Grand Continent Hotels will not receive any proceeds from the Offer for Sale. "The Promoter Selling Shareholder will be entitled to the proceeds of the Offer for Sale, net of the proportion of the Offer-related expenses and the relevant taxes thereon," said Grand Continent Hotels in its Red Herring Prospectus (RHP).

 

Grand Continent Hotels, however, will use the proceeds from the fresh issue for the repayment/prepayment, in full or in part, of certain outstanding borrowings availed by the company, for the expansion of hotel properties in India, and for general corporate purposes.

 

About Grand Continent Hotels 

Grand Continent Hotels 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 travelers and to deliver quality service. Grand Continent Hotels has 16 operational hotels and operates a total of 753 keys as of September 30, 2024, across the states of Karnataka (Bengaluru), Tamil Nadu (Hosur), Goa (Anjuna), Andhra Pradesh (Tirupati), and Telangana (Secunderabad). The company's adjusted occupancy, as per the RHP, across all properties is 72.33  per cent for the six-month period ended September 30, 2024, 75.17  per cent for FY 2024, 79  per cent for FY 2023, and 61.90  per cent for FY 2022.