• Total Issue Size: It provides a total size up to 65,89,200 Equity Shares, each with a face value of Rs. 10 

• Fresh Issue Size: The fresh issue size is 62,60,400 equity shares.
• Offer for sale: It provides an offer for sale of 3, 28,800 equity shares.
• Price Range:The price for each equity share ranges from Rs.107 -113 per share.
• Issue Type: The IPO is a book-built issue.
• Subscription date: The issue period begins from March 20th 2025 and ends on March 24th 2025.
• Lot size: It has a lot size of 1200.
• Listing Date: The IPO is going to be listed on March 27th 2025.
• Stock Exchange: The exchange is going to be the Emerge platform of NSE.

The company with the help of this IPO seeks to utilize the net proceeds towards repayment of its borrowings, meet capital to expand its hotel properties and for other strategic corporate purposes.

The table below (in lakhs) stipulates the restated Financial Information of the company over the last 3 fiscal years and upto September 30, 2024.

India’s hotel industry can be classified into four types of Economy i.e. Mid-priced, Upper Mid-priced, Premium and luxury.  The mid-scale segment consists of Mid-priced and the Upper Mid-priced hotels.  With the rapid growth of middle - income domestic travelers and international budget travelers, the mid-scale hotels in India are blooming due to their standardized yet affordable services.

In 2023, the mid-scale hotel market offered approximately 230,000 rooms generating a revenue of Rs. 316.3 billion, with the constant increase of hotel properties, this supply is projected to grow at a CAGR of 5.0% from 2023 to 2029.  
After the pandemic, India also witnessed a large numbers of travellers. The leisure and business travelers dominated the mid-scale hotel market in 2023 accounting to a total revenue of Rs.180.3 billion and Rs.136.0 billion respectively. Given the continued growth of tourism and the increased volume of travelers, the average daily rate (ADR) of the hospitality sector is anticipated to increase at CAGR of 3.2% and reach Rs. 5,798 crore by 2029 driving the mid-scale hotel market to increase at a CAGR of 9% and reach Rs. 530.1 billion by 2029.

• The company is in the mid-scale hotel sector of business that caters its services especially to the middle-class with its standardized yet affordable services.

• As of September 30, 2024, It has 16 operational hotel properties with  a total of 753 hotel keys.
• The company has a proven track record with strong management team and key professionals in the hospitality sector.
• The company has shown positive financial, increasing its profit after tax from Rs. 79.29 lakhs in 2022 to Rs. 407.77 lakh in 2024 (with Rs. 622.37 lakh as of 30.09.2024).

• The majority of the company's properties are on long lease or on license agreements. Non -compliance with the terms of the agreement or failure to renew the agreement may adversely impact the business operations and financial conditions. 

• The company may be subject to judicial implications due to some of its agreements which may be inadequately stamped or unregistered.
• The majority of the company’s properties are operating under the  trademark license agreement/franchisee agreements with Sarovar Hotels Private Limited and/or Royal Orchid Associated Hotels Limited etc, failure to renew the same or non-compliance with the terms of the agreement may adversely impact the business operations and financial conditions.
• The franchise/ trademark license agreements with the Sarovar/Royal Orchid are non-exclusive and the company is subject to risk from other hotels operating under the same brand.
• The company is majorly operative in the states of Karnataka (Bengaluru/Mysuru), Tamil Nadu (Hosur), Goa (Anjuna/Morjim), Andhra Pradesh (Tirupati) and Telangana (Secunderabad) any political, economical and natural disturbance may adversely impact the business operations and financial conditions.

India’s hotel industry especially the mid-scale hotel segment has seen a positive growth since the pandemic given the constant rise in middle-class and independent budget travelers.

This sector is projected to increase with a CAGR of 9% and reach Rs. 530.1 billion by 2029. The company has become a prominent player in the market with strong financial and fundamentals however, it is also subject to certain industry and market risks which the investors should analyze before investing.

The company with the help of this Initial Public Offering (IPO) aims to raise capital to repay its borrowings, upgrade and expand its hotel properties and for general corporate purposes.

The company has shown positive financial growth since inception and has built a strong market presence but the company also faces certain risks due to the vulnerability of the market and prospective investors should carefully consider the company’s risk as outlined in the RHP draft prospectus before proceeding to invest.