Silver Pearl Hospitality initial public offering of Rs. 9 Crores through a fresh issue of 50,00,000 shares is going to hit the markets on June 6, 2022. The face value is Rs. 10 per share, and the IPO price is fixed at Rs. 18 per share. One can apply for the IPO lot size of 8,000 shares and its multiples.
About company
Silver Pearl Hospitality & Luxury Spaces Ltd. is a hospitality company that operates in the mid-priced hotel sector, consisting of the upper-midscale, midscale and economy hotel segments. Its current properties are located in Rakchham, Kinnaur, Himachal Pradesh. All hotels, cafes and restaurants are operated under the brand name "Osiya".
The company provides authentic hospitality and gives its guests a localised and memorable experience. It seeks to cater to the family as well as adventure-loving guests and deliver differentiated yet superior service offerings, with a value-for-money proposition. Currently, it is operating with 36 rooms in 4 properties. As of the date of filing this offer document, it had 30 employees on its payroll.
Competitive strengths
- Highly experienced promoters and managers team.
- Operational practices aligned with customers' preferences.
- Operational efficiency
Silver Pearl Hospitality listing details
Silver Pearl Hospitality initial public offering of ₹9 crore will hit the market for subscription on Monday, June 6, 2022 and close on Thursday, June 9, 2022.
The price band of the offer has been fixed at ₹18 per equity share of face of ₹10 each. One can apply for the IPO lot size of 8,000 equity shares and its multiples. A retail-individual investor can apply for up to 1 lot (8000 shares or ₹144,000).
Book managers and Registrar
The issue is solely managed by Inventure Merchant Banker Services Pvt. Ltd. and Purva Sharegistry (India) Pvt. Ltd. is the registrar to the issue. SVCM Securities Pvt. Ltd. is the market maker for the company.
IPO Timeline
| Event | Indicative Date |
| IPO Opening Date | June 6, 2022 |
| IPO Closing Date | June 9, 2022 |
| Basis of Allotment | June 14, 2022 |
| Initiation of Refunds | June 15, 2022 |
| Credit of Shares to Demat | June 16, 2022 |
| IPO Listing Date | June 17, 2022 |
Objective of issue
The net proceeds of the fresh issue are proposed to be utilised in the following manner:
- Purchase of Hotel Property in Goa
- General Corporate Purposes
Financials of Silver Pearl Hospitality
A quick glance at the financial performance of Silver Pearl Hospitality over the last three years.
| Period Ended | Total Assets ( ₹m) | Total Revenue ( ₹m) | Profit After Tax ( ₹m) |
| 31-Mar-20 | 2.11 | 0.29 | 0.05 |
| 31-Mar-21 | 2.44 | 0.18 | 0.03 |
| 31-Mar-22 | 4.59 | 0.46 | 0.12 |
Source: RHP
On the financial performance front, for the last three fiscals, SPHLSL has posted turnover/net profits of Rs. 0.29 cr./ Rs. 0.001 cr. (FY20), Rs. 0.18 cr. / Rs. 0.03 cr. (FY21) and Rs. 0.46 cr. / Rs. 0.12 cr. (FY22). While its financial data is listless, its surge in the top and bottom line in the pre-IPO year raises eyebrows and sustainability concerns.
For the last three fiscal years, the company has posted an average EPS of Rs. 0.64 and an average RoNW of 2.59%. The issue is priced at a P/BV of 1.18 based on its NAV of Rs. 15.31 as of March 31, 2022, and at a P/BV of 1.06 based on its post-IPO NAV of Rs. 17.02 per share.
If we attribute FY22 earnings on post IPO fully diluted equity capital, then the asking price is at a P/E of 120 making this offer exorbitantly priced with listless financial data.
