Ventive Hospitality IPO: A Complete Overview

The much-anticipated Ventive Hospitality IPO has garnered significant attention from investors, offering a fresh issue of 2.49 crore shares to raise Rs 1,600 crore. With a price band ranging from Rs 610 to Rs 643 per share, this IPO marks a crucial step in the company’s growth journey. Here’s everything you need to know about the IPO, including subscription details, grey market premium (GMP), financials, and future strategies.

Key Details of Ventive Hospitality IPO

• Issue Size: Fresh issue worth Rs 1,600 crore.
• Price Band: Rs 610–643 per share.
• Lot Size: Minimum 23 shares per lot, requiring a minimum investment of Rs 14,789 for retail investors.
• Reserved Shares: 16,313 shares reserved for employees with a discount of Rs 30 per share.
• IPO Dates: Opened on December 20, 2024, and closed on December 24, 2024.

The IPO is managed by prominent book-running lead managers, including JM Financial, Axis Capital, and HSBC Securities. The registrar for the issue is KFin Technologies.

Subscription and Grey Market Premium (GMP)

The IPO witnessed robust participation:

• Retail Investors: Subscribed 2.11 times.
• Qualified Institutional Buyers (QIBs): Subscribed 1.28 times.
• Non-Institutional Investors (NIIs): Subscribed 2.12 times.
• Employee Category: Oversubscribed 5.63 times.

The grey market premium (GMP) stood at Rs 54, indicating an expected listing price of Rs 697, an 8.40% gain over the upper price band.

Business and Financial Performance

Ventive Hospitality is a leading hospitality asset owner focusing on luxury offerings in India and the Maldives. Its portfolio includes 11 operational assets, such as JW Marriott Pune and Marriott Suites Bengaluru, boasting 2,036 hotel keys.

In the financial year 2024, the company reported:

• Revenue: Rs 478 crore (up 11% year-on-year).
• Net Profit: Rs 166 crore (27% growth from the previous year).
• EBITDA Margin: 59.4%.

However, the first half of FY2025 saw challenges, with operating margins dipping to 44.1%.

Utilization of IPO Proceeds

Ventive Hospitality plans to use Rs 1,400 crore of the proceeds for debt repayment and prepayments. The remaining funds will fuel growth strategies, including expanding its portfolio and geographic footprint.

Growth Strategies and Future Plans

Ventive Hospitality is poised for long-term growth with the following strategies:

1. Geographic Expansion: Targeting regions such as Varanasi, Bengaluru, and international destinations like Sri Lanka.
2. Increasing Room Keys: Adding 367 keys by FY2028 to strengthen its luxury and upscale offerings.
3. Refurbishments: Renovating existing properties to enhance customer experience.

Key Risks and Challenges

Despite its growth potential, Ventive Hospitality faces risks, including:

• Limited consolidated operating history.
• Dependency on third-party operators like Marriott and Hilton.
• Vulnerability to geographic and market-specific risks, especially in the Maldives.

Conclusion

Ventive Hospitality’s IPO presents a promising investment opportunity, with its strong subscription figures and ambitious growth plans. However, potential investors should weigh the risks, including its reliance on specific markets and operators.

For more insights into IPO strategies and financial planning, visit BSE India and NSE India.

By combining luxury hospitality expertise with expansion ambitions, Ventive Hospitality aims to make a significant mark in the hospitality industry, offering lucrative prospects for long-term investors.