Ventive Hospitality Limited is poised to make a bold entrance into the public markets, unveiling an initial public offering (IPO) that promises to captivate both seasoned investors and market newcomers. With a substantial valuation of ₹1,600 crores, the company's public debut represents a strategic milestone in its growth trajectory, targeting investors with its carefully calibrated offering between December 20 and December 24, 2024. This fresh issue of 2.49 crore shares signals the company's ambition to leverage public capital markets and expand its footprint in the hospitality sector.
The IPO structure has been meticulously designed to maximize accessibility and investor appeal. Priced within an attractive band of ₹610 to ₹643 per share, and offered in convenient lots of 23 shares, the offering creates an approachable entry point for retail investors. A minimum investment of ₹14,789 opens the door for individual investors to participate in Ventive Hospitality's potential growth story. The company has also streamlined the administrative process, with share allotment expected on December 26, 2024, and anticipated listing on both the Bombay Stock Exchange and National Stock Exchange by December 30, 2024. This methodical approach demonstrates the company's commitment to transparency and investor-friendly practices, positioning the IPO as an intriguing opportunity for those looking to diversify their investment portfolio in the dynamic hospitality sector.
Ventive Hospitality Limited IPO is a fundraise worth ₹1,600 crores comprising fresh issue of 2.49 crore shares. The IPO will be available for subscription from December 20, 2024, to December 24, 2024, providing an opportunity for investors looking to gain a stake in the hospitality sector.
| Ventive Hospitality IPO Date | December 20, 2024 - December 24, 2024 |
| Price Band | ₹610 to ₹643 per share |
| Face Value | ₹1 per share |
| Lot Size | 23 shares |
| Issue Type | Book-built issue |
| Fresh Issue | 2,48,83,358 shares of ₹1 per share, amounting to ₹1,600 crores |
| Total Issue Size | 2,48,83,358 shares of ₹1 per share, amounting to ₹1,600 crores |
| Listing at | BSE, NSE |
| Employee Discount | ₹30 per share |
| Share Holding Post Issue | 23,35,41,188 |
| Share Holding Pre Issue | 20,86,57,830 |
The Ventive Hospitality Limited IPO opens for subscription on December 20, 2024, and closes on December 24, 2024, with allotment slated for December 26, 2024.
| IPO Open Date | December 20, 2024 (Friday) |
| IPO Close Date | December 24, 2024 (Tuesday) |
| Basis of Allotment | December 26, 2024 (Thursday) |
| Initiation of Refunds | December 27, 2024 (Friday) |
| Credit of Shares to Demat Account | December 27, 2024 (Friday) |
| Listing Date on Exchanges | December 30, 2024 (Monday) |
| Cut-off Time for UPI Mandate Confirmation | 5 PM on December 24, 2024 (Tuesday) |
Ventive Hospitality Limited, established in February 2002, has strategically positioned itself as a prominent player in the hospitality sector, focusing on high-end luxury hotels and resorts across business and leisure segments. As of September 30, 2024, the company boasts an impressive portfolio of 11 operational hospitality assets spanning India and the Maldives, comprising 2,036 keys across various upscale segments. The company's strategic approach involves partnering with globally recognized operators such as Marriott, Hilton, Minor, and Atmosphere, ensuring high-quality management and international standards. These properties are strategically located in prime urban centers like Pune and Bengaluru, popular tourist destinations in the Maldives, and culturally significant locations like Varanasi.
The company's luxury hospitality portfolio is particularly noteworthy, featuring prestigious properties including JW Marriott in Pune (both pre- and post-acquisition), The Ritz-Carlton in Pune, Conrad Maldives, Anantara Maldives, and Raaya by Atmosphere in the Maldives. This diverse and strategically positioned asset base is supported by a robust workforce of 2,791 permanent employees and an additional 632 contract personnel as of September 30, 2024. The combination of prime locations, partnerships with renowned global operators, and a substantial workforce underscores Ventive Hospitality Limited's commitment to delivering exceptional hospitality experiences across different market segments and geographical regions.
Ventive Hospitality Limited has outlined a comprehensive strategy for utilizing the proceeds from its Fresh Issue, focusing on strategic financial optimization and corporate development. The company intends to allocate the net proceeds across four key objectives: first, repaying or prepaying existing borrowings in part or full; second, covering the associated interest accruals; third, providing financial support to its step-down subsidiaries SS & L Beach Private Limited and Maldives Property Holdings Private Limited through targeted investments and interest payments; and fourth, addressing general corporate purposes. This multifaceted approach demonstrates the company's prudent financial management, aimed at strengthening its balance sheet, supporting subsidiary growth, and maintaining operational flexibility.
The Ventive Hospitality Limited IPO showcases a healthy market capitalization of ₹15,016.70 crores as on March 31, 2024. Key performance indicators reflect the company's financial health, with a Return on Net Worth (RoNW) of -1.82%, while the Price-to-Book Value (P/BV) is seen at 3.66.
On an annual basis, the company's Profit After Tax (PAT) decreased by -526% while the revenue increased by 8% in the financial year ending on March 31, 2024. A comparison of earnings per share (EPS) reveals a pre-IPO EPS of -₹3.20 while it is -₹11.80 post-IPO.
| Period Ended | September 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Assets | 8,794.10 | 8,606.17 | 8,010.41 | |
| Revenue | 875.90 | 1,907.38 | 1,762.19 | 1,197.61 |
| Profit After Tax | -137.83 | -66.75 | 15.68 | -146.20 |
| Net Worth | 3,665.83 | 3,657.15 | 3,441.29 | |
| Total Borrowing | 3,682.13 | 3,599.66 | 3,291.07 |
Amount in ₹ crores
Ventive Hospitality distinguishes itself through a robust portfolio of premium hospitality assets strategically positioned across key business hubs, tourist destinations, and spiritual centers. The company's strength lies in its collaboration with world-renowned hospitality brands like Marriott, Hilton, and Atmosphere, which ensures operational excellence and strong customer loyalty. With 11 luxury hotels and resorts in India and the Maldives, the company has demonstrated a proven track record of acquisition-led growth and strategic expansion.
The company's leadership is a significant competitive advantage, with experienced promoters like Atul I. Chordia and backing from global investors such as Blackstone. This expertise is complemented by a professional management team with deep industry knowledge. Ventive Hospitality is well-positioned to capitalize on strong industry tailwinds, particularly the growing domestic and international tourism market. Its diversified portfolio caters to business, leisure, and spiritual travelers, with prime locations that attract high-spending customers and contribute to the company's potential for sustained growth.
The company faces several notable challenges that could impact its future performance. Most critically, Ventive Hospitality carries high debt levels of ₹3,682.13 crores, which may constrain financial flexibility. Despite revenue growth, the company reported losses in fiscal year 2024, indicating potential operational inefficiencies. The hospitality business is inherently sensitive to economic fluctuations, making the company vulnerable to market volatility.
A significant concentration risk exists in the company's operational model. Eight of its eleven hospitality assets are operated through or franchised by Marriott and Hilton, representing approximately 78% of its portfolio. This heavy reliance on third-party operators creates vulnerability, as termination or non-renewal of these agreements could severely disrupt the business. Furthermore, the company's income is geographically concentrated, with a substantial portion derived from assets in Pune and the Maldives. The seasonal and cyclical nature of the hospitality industry, combined with limited historical performance data as a first-time public offering, introduces additional uncertainty for potential investors. The success of Ventive Hospitality will depend on its ability to navigate these challenges while maintaining its strategic growth trajectory.
The Ventive Hospitality Limited IPO offers an exciting opportunity for investors to enter the hospitality sector. While the prospect of early investment is compelling, prudent financial decision-making requires careful evaluation of the company's fundamentals, market positioning, and growth potential. Prospective investors should conduct thorough research to ensure this opportunity aligns with their personal financial objectives and risk tolerance, transforming a promising investment prospect into a strategic financial decision.
What is the Ventive Hospitality IPO?
The Ventive Hospitality Limited IPO is a main-board offering consisting of a fresh issue of 2.49 equity shares with a face value of ₹1, aiming to raise a total of ₹1,600 crores. The share price is set between ₹610 and ₹643, with a minimum order quantity of 23 shares. This IPO will be open for subscription from December 20, 2024, to December 24, 2024. Kfin Technologies Limited is the registrar while 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.
When will the Ventive Hospitality IPO open?
The Ventive Hospitality Limited IPO will open for subscription on December 20, 2024, and will close on December 24, 2024.
When is the Ventive Hospitality IPO listing date?
The tentative listing date for the Ventive Hospitality Limited IPO is Monday, December 30, 2024.
For android only