Is Grand Continent Hotels Ltd IPO Halal or Haram? If you’re looking for a detailed Shariah compliance analysis, you’re in the right place! In this article, we break down whether the Grand Continent Hotels Ltd IPO meets Shariah Screening guidelines.
Is Grand Continent Hotels Ltd IPO Halal or Not?
The Grand Continent Hotels Ltd IPO is considered Not Halal and Non-Shariah Compliant because the company fails the “Impermissible Income to Total Revenue” criterion, with an impermissible income ratio of 6.63%, exceeding the permissible limit of 5%.
Additionally, it fails the “Interest-Bearing Debt to Total Assets” criterion, with an interest-bearing debt ratio of 41.07%, surpassing the allowable 33% limit under Shariah guidelines. Furthermore, the company’s business activity is classified as doubtful due to its involvement in the hotel industry, which includes a bar, raising concerns about potential revenue from alcoholic beverages or non-Zabiha food.
Business Activity – Doubtful
Grand Continent Hotels Ltd operates in the hotel industry, generating revenue primarily from soft drinks. However, the company also runs a bar, and there is no clear breakdown of earnings from alcoholic beverages or non-Zabiha food. Due to this uncertainty, its business activities are marked as doubtful under Shariah compliance screening.
Shariah Compliance Analysis of Grand Continent Hotels Ltd
NOT HALAL / NON-SHARIAH COMPLAINT
| Criteria | Value | Status |
| Business Activity | Hotel | ⚠️ Doubtful |
| Impermissible Income to Total Revenue | 6.63% | ❌ FAIL |
| Interest-Bearing Debt to Total Assets | 41.07% | ❌ FAIL |
| Illiquid Assets to Total Assets Ratio | 55.93% | ✅ PASS |
| Net Liquid Assets vs Market Capitalization | Compliant as per Shariah principles | ✅ PASS |
| Non-Compliant Investments to Total Assets | Less than 33% (Compliant) | ✅ PASS |
Grand Continent Hotels Ltd IPO Price and Issue Details
| Particulars | Details |
|---|---|
| IPO Date | March 20, 2025 – March 24, 2025 |
| Expected Listing Date | Thu, Mar 27, 2025 |
| Face Value | ₹10 per share |
| Issue Price Band | ₹107 – ₹113 per share |
| Lot Size | 1,200 Shares |
| Total Issue Size | 65,89,200 shares (₹74.46 Cr) |
| Fresh Issue | 62,60,400 shares (₹70.74 Cr) |
| Offer for Sale | 3,28,800 shares of ₹10 (₹3.72 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | NSE SME |
| Pre-Issue Shareholding | 1,86,59,003 shares |
| Post-Issue Shareholding | 2,49,19,403 shares |
| Market Maker Portion | 3,30,000 shares (Alacrity Securities Ltd.) |
Listing Details of Grand Continent Hotels Ltd IPO
| IPO Opening Date | Thu, Mar 20, 2025 |
| IPO Closing Date | Mon, Mar 24, 2025 |
| Expected Allotment Date | Tue, Mar 25, 2025 |
| Refund Initiation | Wed, Mar 26, 2025 |
| Shares Credited to Demat | Wed, Mar 26, 2025 |
| Expected Listing Date | Thu, Mar 27, 2025 |
| UPI Mandate Confirmation Deadline | 5 PM on Mar 24, 2025 |
Business Overview of Grand Continent Hotels Ltd
Grand Continent Hotels Ltd is a prominent hospitality company with over 15 years of experience, operating 17 premium hotels across six cities in India. The company focuses on delivering superior, personalized hospitality experiences, catering to both business and leisure travelers.
Their portfolio includes properties in key locations such as Bengaluru, Mysore, Hyderabad, Tirupati, Secunderabad, and Goa, offering modern amenities and luxury accommodations. With a workforce exceeding 500 employees, Grand Continent Hotels Ltd has established itself as a leading player in the mid-priced segment of the hospitality industry, serving over 100 corporate clients. The company’s commitment to excellence is reflected in its consistent growth and expansion into new markets.
Grand Continent Hotels Ltd Financial Information (Restated)
| Category | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets | ₹97.94 Cr | ₹73.91 Cr | ₹ 42.26 Cr | ₹34.37 Cr |
| Revenue | ₹31.86 Cr | ₹31.53 Cr | ₹17.05 Cr | ₹6.03 Cr |
| Profit After Tax | ₹6.81 Cr | ₹4.12 Cr | ₹1.05 Cr | -₹0.79 Cr |
| Net Worth | ₹40.18 Cr | ₹29.99 Cr | ₹0.59 Cr | ₹1.63 Cr |
| Reserves & Surplus | ₹22.36 Cr | ₹26 Cr | -₹0.42 Cr | ₹2.64 Cr |
| Total Borrowing | ₹40.22 Cr | ₹34.96 Cr | ₹37.07 Cr | ₹34.72 Cr |
Conclusion
Based on the Shariah screening standard and the most recent financial report, Grand Continent Hotels Ltd is considered Not Halal and Non-Shariah Compliant as it fails the “Impermissible Income to Total Revenue” criterion, with an impermissible income ratio of 6.63% (exceeding the 5% limit), and the “Interest-Bearing Debt to Total Assets” criterion, with an interest-bearing debt ratio of 41.07% (exceeding the 33% limit). Additionally, its business activity is classified as doubtful due to concerns about revenue from alcoholic beverages or non-Zabiha food. (Allah Knows the Best)
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Hasan is the founder of HalalFinance.co.in, created after personally struggling to find reliable answers about halal investing in stocks. With a finance background and a passion for helping the Muslim community, He now shares well-researched, transparent, and authentic content to empower Muslims on their path to halal wealth-building.