Valencia India IPO

About Valencia India IPO

Valencia India Ltd IPO comprises a fresh issue to 40,00,000 shares, aggregating up to ₹44 crores and and an offer for sale of up 450,000 equity shares, respectively, aggregating up to ₹4.50 lakhs. It’s a book-built issue. The price band is between ₹95 and ₹110. The lot size is 1200. The IPO opens on June 26, 2025 and closes on June 30, 2025. The issue of shares to the demat account will take place on July 2, 2025, the shares will be allotted on July 2, 2025 and the refunds will be initiated on July 2, 2025. The listing of shares will take place on July 3, 2025.

Objectives of Valencia India IPO

• Development of 15 villas and club house

• General corporate purposes

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.

Risks of Valencia India 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.

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.

How to Check Allotment Status of Valencia India IPO?

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

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 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.