IPO Details
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IPO Size
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Schedule of Valencia India Ltd
Start date
End date
Allotment of bids
Refund Initiation
Listing on exchange
About Valencia India Ltd IPO
Valencia India Ltd IPO comprises a fresh issue to 40,00,000 and and an offer for sale of up 9,00,000 equity shares, respectively. It’s a book-built issue. The IPO opens on TBA and closes on TBA. The issue of shares to the demat account will take place on TBA, the shares will be allotted on TBA and the refunds will be initiated on TBA.
Objectives of Valencia India Ltd IPO
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Development of 15 villas and club house
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General corporate purposes
Valencia India Ltd IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | Up to 40,00,000 equity shares |
Offer for Sale | Up to 9,00,000 equity shares |
EPS in ₹ for FY 24 | 2.16 |
Valencia India Ltd IPO Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the offer |
Non-institutional Investors | Not less than 15% of the offer |
Retail Individual Investors | Not less than 35% of the offer |
Industry Outlook
India being one the most popular travel destinations across the globe has resulted in the Indian tourism and hospitality industry emerging as one of the key drivers of growth among the services sector in India. The Indian travel and tourism industry is expected to record an annual growth at 7.1% per annum.
The travel market in India is projected to reach US$ 125 billion by FY27 from an estimated US$ 75 billion in FY20. Also, the market size of the hospitality industry in India is projected to be approximately US$ 24.61 billion in 2024 and is anticipated to reach US$ 31.01 billion by 2029. The projected growth is anticipated to occur at a compound annual growth rate (CAGR) of 4.73% throughout the forecast period of 2024-29.
Company Information
Valencia India Ltd operates a resort at Moje village Sakora in the foot hills of Mount Abu Road, Sirohi, Rajasthan known as ‘Valencia Club’. The club houses a swimming pool, kids’ play area, restaurant, gym and other such amenities.
Apart from the club, Valencia India Ltd organises a variety of events including pre-wedding functions, receptions, weddings, cocktail parties, family/group picnics, corporate picnics, birthday parties, and get-togethers.
Valencia has entered into an agreement with RCI affiliates, effective October 24, 2017, for a duration of 10 years. Valencia Country Club membership grants members the opportunity to enjoy a vacation at any of the Split Week Programme of RCI-affiliated resorts.
Valencia India Ltd Strengths
Delivery of quality family holiday experience
Valencia focuses on providing a high-quality family holiday experience, offering a range of family-friendly amenities. The club features spacious villas, recreational facilities, and diverse dining options that cater to the needs of all family members. With attractions such as a swimming pool, spa, gym, multi-purpose hall, and family lounges, guests can relax and have fun.
Strength in RCI affiliates
The company’s partnership with RCI greatly strengthens it by giving it access to a global network of vacation exchange options. This expands its offerings and broadens its reach.
The connection with RCI also enhances its credibility, making it more appealing to potential clients and partners. By leveraging RCI's strong reputation and resources, this alliance supports its growth and helps it stand out in the competitive market.
Risks of Valencia India Ltd IPO
- Dependence on Long-term Lease Agreement
The company has entered into a lease agreement for a term of 20 years with Mahindra Holidays and Resorts India Limited(Club Mahindra). Upon expiry of the term, the lease shall be renewable for such further period as may be mutually agreed between both the parties with a lock in period of 5 years.
- Revenue Loss and Member Dissatisfaction
The company’s inability to manage the timing of vacation requests of its members and its affiliates members could lead to member dissatisfaction as well as loss of revenue generation opportunities.
- Mismatch Between Inventory and Vacation Ownership Sales
The company’s inventory of rooms and cottages may be in excess of the vacation ownerships sold by it to its members and affiliates and this may have an adverse effect on its results of operations. Similarly, its inventory of rooms and cottages could limit its growth prospects if such inventory is less than the number of vacation ownerships sold by it.
All Financial Information about Valencia India
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Peer Comparison
The company does not have any peer group company for comparison with industry peers.
Anchor Investor Bidding Date TBA
IPO Registrar and Book Running Lead Manager
- IPO Registrar: KFin Technologies Ltd
- Book Running Lead Manager: Interactive Financial Services Ltd
Business Model
Apart from offering club facilities, Valencia India Ltd organises various events including birthday parties, get-togethers, corporate picnics etc. Its RCI affiliation grants members access to a wide range of global resorts. Its partnership with Club Mahindra is an important milestone for the company, improving its services and aligning it with a renowned name in the hospitality industry.
Company Growth Trajectory
The total income of Valencia India Ltd grew from ₹4.1873 crores in FY 22 to ₹7.1149 crores in FY 24. Its EBITDA increased from ₹0.4849 crores in FY 22 to ₹3.0699 crores in FY 24, while PAT increased from ₹0.2518 crores in FY 22 to ₹1.9406 crores in FY 24. Exceptional service and experience of its promoter have contributed to the company’s growth over the years.
Market Position
With the extensive experience of its promoter, Mr. Keyur Patel, the company, Valencia India Private Limited along with Basil Buildcon Private Limited has formed a strategic partnership with Mahindra Holidays & Resorts India Ltd (Club Mahindra).
The terms of the agreement ensure high-quality standards and excellent service, reflecting its commitment to this new collaboration. Also, Valencia has entered into an agreement with RCI affiliates, effective October 24, 2017, for a duration of 10 years. This partnership will allow its customers to explore a variety of global resorts of high quality.
Valencia India Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 7.1149 | 5.2270 | 4.1873 |
Profit Before Tax (in ₹ crores) | 2.6353 | 0.8101 | 0.3728 |
Profit After Tax (in ₹ crores) | 1.9406 | 0.5585 | 0.2518 |
EPS in ₹ | 2.16 | 0.62 | 0.28 |
Valencia India Ltd Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 2.6353 | 0.8101 | 0.3728 |
Net Cash Flow Generated from/ (utilised in) Operating Activities (in ₹ crores) | 3.8554 | 0.4631 | (0.1828) |
Net Cash Flow Utilised in Investing Activities (in ₹ crores) | (7.7325) | (1.2785) | (0.1713) |
Net Cash Flow Generated From/ (utilised in) Financing Activities (in ₹ crores) | 3.6851 | 1.1308 | 0.3037 |
Cash and Cash Equivalents at the End of the Period/ Year (in ₹ crores) | 0.3759 | 0.5679 | 0.2527 |
How to Check Allotment Status of Valencia India Ltd IPO?
1. Visit the Registrar’s Website
- Visit the official website of KFin Technologies Ltd
- Click on ‘IPO Allotment Status’ under ‘Investors’ from ‘Products’
- Click on any one of the links shown
- Choose the IPO name from dropdown
- Enter your application number, Demat account number or PAN number
- Enter captcha and click on ‘Submit’ to know the status
2. Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investor Services' tab. Under 'Investors Services', click on 'Status of Issue Application'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:
- Choose the Issue Type
- Select the Issue Name from dropdown
- Put in either your application number or PAN number
- Check the box ‘I’m not a robot’
- Click on ‘Search’ to know allotment status
How to Apply for Valencia India Ltd IPO?
- Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Valencia India Ltd IPO FAQs
What is the Valencia India Ltd IPO?
The IPO of Valencia India Ltd comprises a fresh issue and an offer for sale. Fresh issue constitutes up to 40,00,000 equity shares, while the offer for sale makes up to 9,00,000 equity shares.
When will the IPO of Valencia India Ltd go live?
The exact dates of the IPO are yet to be announced.
From where can I learn more about the IPO of Valencia India Ltd?
You can learn more about the IPO of Valencia India Ltd from the company’s draft red herring prospectus here.
