Ventive Hospitality IPO: Ventive Hospitality's Rs 1600 crore initial public offering (IPO) opened for subscription today i.e. Friday, December 20. The subscription window for this book-built issue, which is entirely a fresh issue of Rs 2.5 crore shares, will close on Tuesday, December 24. Meanwhile, the Blackstone-backed firm raised Rs 719.5 crore from anchor investors ahead of its public issue. It allotted 1,11,90,513 shares to anchor investors at a price of Rs 643 per share, with a face value of Rs 1 per share. Quant Mutual Fund, Government Pension Global Fund, Allspring Global Investment LLC, Tata Absolute Return Fund, Aditya Birla India Fund, SBI General Insurance Company Limited, SBI Life Insurance Company Limited, Nuvama, JM Financial Mutual Fund and 360 One Income Opportunities Fund were among the top anchor investors of the company.

Ventive Hospitality IPO GMP

According to stock market sources, the previous grey market premium (GMP) of the Ventive Hospitality IPO was Rs 66. Considering the upper price band of the issue at Rs 643 per share, the estimated listing price of Ventive Hospitality shares is Rs 709, a premium of 10 per cent.

Highlights of Ventive Hospitality IPO

Ventive Hospitality IPO Price Band

The price band of the issue has been fixed at ₹610 to ₹643 per share.

Ventive Hospitality IPO Date

Mainboard IPO opens for subscription on Friday, December 20 and closes on Tuesday, December 24.

Ventive Hospitality IPO Size

The issue does not have an offer for sale component and is entirely a fresh issue of 2.49 crore shares to raise Rs 1,600 crore.

Ventive Hospitality IPO Reservations

75 per cent of the net issue is reserved for qualified institutional buyers (QIBs) and 15 per cent of the net issue is reserved for non-institutional investors. The remaining 10 per cent is reserved for retail investors.

Ventive Hospitality IPO Lot Size

The minimum lot size for application is 23 shares. With the upper price band of the issue at Rs 643, the minimum investment amount required by retail investors is Rs 14,789.

Ventive Hospitality IPO Allotment Date and Listing Date

According to SEBI's T+3 rule, a company must list its shares three business days after the IPO closing date. This means that the company's shares will be listed on BSE and NSE on Monday, December 30. After that, the share allotment will be finalized on T+1 basis. Since the Ventive Hospitality IPO is closing on December 24, the company will finalize the share allotment on Thursday, December 26, as December 25 is a Christmas holiday.

Ventive Hospitality IPO Book

JM Financial Limited, Axis Capital Limited, HSBC Securities & Capital Markets Private Limited, ICICI Securities Limited, IIFL Securities Limited, Kotak Mahindra Capital Company Limited, SBI Capital Markets Limited are the book-running lead managers to the IPO while KFin Technologies is the registrar to the issue.

Objective of the issue

According to the company's RHP, it intends to use the net proceeds from the issue to repay certain borrowings taken by it and its step-down subsidiaries - SS&L Beach Private Limited and Maldives Property Holdings Private Limited. It will also use the net proceeds for general corporate purposes.

Ventiv Hospitality Business Overview

According to the company's RHP, it focuses on luxury offerings in the business and leisure segments. It said all our hospitality properties are operated or franchised by global operators including Marriott, Hilton, Minor and Atmosphere.

Ventive Hospitality Financial Performance

The company's revenue from operations for FY22 was Rs 2,291.70 million, which increased to Rs 4,308.13 million in FY23 and Rs 4,779.80 million in FY24. The company's revenue from operations for the six months ended September 30 of the current financial year was Rs 3,727.78 million. Total comprehensive income for FY22, FY23 and FY24 stood at Rs 297 million, Rs 1,312.02 million and Rs 1,666.82 million, respectively. However, for the six months ended September 30 of the current financial year, the company incurred a loss of Rs 348.66 million due to recent acquisitions.

Ventive Hospitality IPO Review

Experts say the company's core strength is its premium hospitality properties and its established track record of development and acquisition-led growth in India and Maldives. On the valuation front, the company appears relatively cheaper than its peers in terms of PE (price to earnings ratio). As reported by Mint, brokerage firm SBI Securities reported that the company is valued at 90.3 times and 48.5 times FY24 PE and EV/EBITDA multiples, respectively, based on the upper price band on post-issue capital.

Should you buy?

Brokerage firm Canara Bank Securities has a 'neutral' view on the issue. Canara Bank Securities said Panchshil Realty's commitment to innovation and sustainability strengthens its competitive differentiation. While the firm is poised for stable growth, constant monitoring of profitability trends is essential for accurate valuation reassessment, Mint reported. The brokerage firm emphasised that strategic alliances with global brands such as Blackstone and JW Marriott substantially enhance its brand value and operational excellence. It said the company's strategic focus on hotel development rather than management ensures streamlined operations and high returns. Additionally, low construction cost per room further enhances profitability. Canara Bank Securities said a major development pipeline of over 1,000 in India and Sri Lanka supports future growth prospects. However, the main challenge remains in efficiently scaling up operations in new markets.