Ventive Hospitality Limited, a rising star in the luxury hotel industry is about to launch its IPO and it’s already creating a massive buzz. With world-class properties tied to global giants like Marriott and Hilton, this company is set to revolutionize the hospitality landscape in India and the Maldives. Imagine owning a piece of a company that boasts stunning hotels in some of the most premium destinations like Pune, Bengaluru and the Maldives. But is this the right chance to tap into an exclusive, high-growth sector that’s attracting investors worldwide? Is it an exciting opportunity for your portfolio?
In this article, we will delve into the key details of the Ventive Hospitality IPO, analyzing its business model, growth prospects and investment potential to help you assess whether it’s a smart addition to your portfolio.
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Table of Contents
Ventive Hospitality IPO Details
Ventive Hospitality IPO is a book-built issue valued at ₹1600 crore and it’s entirely a fresh issue. This means that the proceeds from the issue would be used for generate corporate purposes and to strengthen the company.
Ventive Hospitality’s ₹1600 crore IPO opens for subscription on Friday, December 20, 2024 and will close on Tuesday, December 24, 2024. The allotment for Ventive Hospitality IPO is expected to be finalized on Thursday, December 26, 2024 with a tentative listing date on the stock exchanges set for Monday, December 30, 2024. The price band for Ventive Hospitality shares has been set at ₹610 to ₹643 per share.
| IPO Name | Ventive Hospitality Limited |
| IPO Open Date | 20 December 2024 |
| IPO Close Date | 24 December 2024 |
| Price Band | ₹610 to ₹643 per share |
| Lot Size | 23 shares |
| Face Value | ₹1 per share |
| Total-Issue Size | 2,48,83,358 shares (aggregating up to ₹1,600.00 Cr) |
| Fresh Issue | 2,48,83,358 shares (aggregating up to ₹ 1,600.00 Cr) |
| Employee Discount | ₹30 |
| Share Holding Pre Issue | 20,86,57,830 shares |
| Share Holding Post Issue | 23,35,41,188 shares |
| Share Allotment Date | 26 December 2024 |
| Initiation of Refund | 27 December 2024 |
| Credit of Shares to Demat | 27 December 2024 |
| Listing Date | 30 December 2024 |
| UPI Cut Off Time | 24 December 2024 – 5 P.M. |
| Listing Exchange Name | BSE, NSE |
| Lead Manager(s) of Issue | 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 |
| Registrar of Issue | Kfin Technologies Limited |
For detailed information, you can refer to Ventive Hospitality IPO RHP.
Ventive Hospitality IPO GMP Today
Prior to its opening, the IPO has received a positive response in the unlisted market, where it is currently trading at a premium of approximately 10%. Ventive Hospitality IPO GMP today stands at ₹63, indicating an estimated listing price of ₹706.
Check IPO Live GMP: View now for Real-Time Updates
Ventive Hospitality IPO Lot Size
Ventive Hospitality Limited has issued 2,48,83,358 shares worth ₹1,600 crore for the fresh issue. The minimum lot size for an application is 1 lot (23 shares) and the minimum amount of investment required by retail investors is ₹14,789.
The minimum lot size investment for s-HNI (Small High Net Worth Individual) is 14 lots (322 shares), amounting to ₹2,07,046, while the maximum is 67 lots (1,541 shares), amounting to ₹9,90,863.
For b-HNI (Big High Net Worth Individual), the minimum lot size is 68 lots (1,564 shares) amounting to ₹10,05,652.
| Category | Lots | Shares | Amount |
|---|---|---|---|
| Retail(Min) | 1 | 23 | ₹14,789 |
| Retail(Max) | 13 | 299 | ₹1,92,257 |
| s-HNI(Min) | 14 | 322 | ₹2,07,046 |
| s-HNI(Max) | 67 | 1,541 | ₹9,90,863 |
| b-HNI(Min) | 68 | 1,564 | ₹10,05,652 |
Ventive Hospitality IPO Reservation Details
Below are the limits for the shares offered in the different investor categories for this IPO:
| Investor Category | Shares Offered |
| QIB Shares Offered | Not less than 75% of the Net Issue |
| Retail Shares Offered | Not more than 10% of the Net Issue |
| NII (HNI) Shares Offered | Not more than 15% of the Net Issue |
Category Reservation Details
| Application Category | Maximum Bidding Limits | Bidding at Cut-off Price Allowed |
|---|---|---|
| Only RII (Retail) | Up to ₹2 lakhs | Yes |
| Only s-NII | ₹2 lakhs to ₹10 lakhs | No |
| Only b-NII | ₹10 lakhs to NII Reservation Portion | No |
| Only Employee | Up to ₹5 lakhs | Yes |
| Employee + RII/NII | Employee limit: Up to ₹5 lakhs (In certain cases, employees are given a discount if the bidding amount is up to ₹2 lakhs) If applying as RII: Up to ₹2 lakhs If applying as NII: sNII > ₹2 lakhs and up to ₹10 lakhs and bNII > ₹10 lakhs | Yes for shareholder/RII |
Ventive Hospitality IPO Anchor Investors Details
Ventive Hospitality raised ₹719.55 crore from anchor investors. The bid date for anchor investors in the Ventive Hospitality IPO was December 19, 2024.
| Bid Date | December 19, 2024 |
| Shares Offered | 1,11,90,513 |
| Anchor Portion Size (In Cr.) | 719.55 |
| Anchor lock-in period end date for 50% shares (30 Days) | January 25, 2025 |
| Anchor lock-in period end date for remaining shares (90 Days) | March 26, 2025 |
About the Company
Next, let’s shift our focus to explore more about the company’s background, operations, strengths and risks, financial statements and key highlights.
Founded in February 2002, Ventive Hospitality Limited has established itself as a prominent name in the hospitality industry. The company primarily focuses on the development and management of high-end luxury hotels and resorts in both the business and leisure segments.
As of September 30, 2024, Ventive Hospitality boasts 11 operational properties in India and the Maldives with 2,036 hotel keys spread across various upscale segments. The company’s assets are operated or franchised by globally renowned operators such as Marriott, Hilton, Minor and Atmosphere.
The company’s properties are located in some of the most sought-after destinations such as:
- Urban centers like Pune and Bengaluru
- Popular tourist destinations like the Maldives
- Cultural and religious hubs like Varanasi
The company’s pre-acquisition luxury hospitality asset comprises:
- JW Marriott, Pune
Post-acquisition luxury hospitality assets comprise:
- JW Marriott, Pune
- The Ritz-Carlton, Pune
- Conrad, Maldives
- Anantara, Maldives
- Raaya by Atmosphere, Maldives.
Ventive Hospitality Limited’s portfolio screams luxury, and the growth isn’t stopping anytime soon. Projects in the pipeline include a 167-key Marriott hotel in Varanasi, The Ritz-Carlton Reserve in Sri Lanka and an expansion of 120 keys at Marriott Aloft in Bengaluru’s Whitefield.
As of September 30, 2024, Ventive Hospitality employs a strong team of 2,791 permanent staff and 632 contractual workers, ensuring smooth operations across its properties.
Competitive Strengths:
- The company owns top-tier properties and Grade A annuity assets that offer consistent returns.
- With a solid history of successful acquisitions and developments in both India and the Maldives, the company has demonstrated its ability to grow strategically.
- The company benefits from strong leadership, backed by promoters with both local and international expertise. Adding to this, the company has an experienced and skilled management team that upholds the highest standards of operations.
- The company has a proven track record of enhancing the value of its properties through expert management.
- With the hospitality sector witnessing rapid growth, Ventive Hospitality is poised to take advantage of the expanding opportunities in the market.
Due to its commitment to high-quality service and reliable management, Ventive Hospitality holds a strong position in the market and is well-positioned for further expansion and growth in the coming years, making it an exciting prospect for investors.
Ventive Hospitality IPO Objectives (Objects of the Issue)
The company plans to allocate the net proceeds from the issue for the following purposes:
- Repayment/prepayment partially or fully to settle some of the company’s existing borrowings, along with the payment of accrued interest on those loans.
- The company will make investments in its step-down subsidiaries, SS & L Beach Private Limited and Maldives Property Holdings Private Limited to cover the repayment of their loans and the associated interest.
- General corporate purposes.
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Ventive Hospitality Limited Financial Information (Proforma Consolidated)
Ventive Hospitality Limited’s revenue grew by 8%, while its profit after tax (PAT) saw a significant decline of 526% in FY24 (April 1, 2023 to March 31, 2024).
| Period Ended | 31 Mar 2022 | 31 Mar 2023 | 31 Mar 2024 | 30 Sep 2024 |
| Assets | 8,010.41 | 8,606.17 | 8,794.1 | |
| Revenue | 1,197.61 | 1,762.19 | 1,907.38 | 875.9 |
| Profit after Tax | -146.2 | 15.68 | -66.75 | -137.83 |
| Net Worth | 3,441.39 | 3,657.15 | 3,665.83 | |
| Total Debt | 3,291.07 | 3,599.66 | 3,682.13 | |
| Amt in ₹ Crore | ||||
Key Performance Indicators
Ventive Hospitality Limited has a market capitalization of ₹15016.70 crore. As of March 31, 2024, the company’s key performance indicators (KPIs) include Price to book value (P/BV) of 3.66 and Return on net worth (RoNW) of -1.82%.
| Key Performance Indicators | Value |
|---|---|
| RoNW | -1.82% |
| Price to Book Value | 3.66 |
The EPS and PE ratios before and after the Ventive Hospitality IPO issue are detailed in the list below:
| Ratios | Pre IPO | Post IPO |
| EPS (₹) | -3.20 | -11.80 |
| P/E (x) | -201.01 | -54.48 |
- The Pre-IPO EPS is calculated based on the pre-issue shareholding as of the RHP date and the latest FY earnings available in the RHP, as of March 31, 2024.
- The Post-IPO EPS is calculated based on the post-issue shareholding and annualized FY earnings as of September 30, 2024, as provided in the RHP.
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Ventive Hospitality IPO Review (Avoid)
The review of the Ventive Hospitality IPO has been done based on the following points:
- Revenue Growth: Ventive Hospitality reported 8% revenue growth between FY23 and FY24, reflecting operational improvements. This reflects steady growth and a strong market presence. However, this growth does not fully justify the premium valuation.
- Profit Growth: The company posted a loss of ₹66.75 crore in FY24 compared to a profit of ₹15.68 crore in FY23, primarily due to rising costs and interest expenses. Also, the negative EPS and negative P/E ratios indicate that the company is incurring losses and is overvalued.
- Valuation Metrics: Pre-IPO P/E: -201.01 | Post-IPO P/E: -54.48
As per the offer document, the company has shown Chalet Hotels, Samhi Hotels, Juniper Hotels, The Indian Hotels, EIH Limited, Lemon Tree Hotels and Apeejay Surrendra Park Hotels as their listed peers. They are trading at a P/E of 290.0, 166.0, 230.0, 87.60, 39.80, 82.4 and 56.4 (as of December 18, 2024) respectively. Therefore, at current valuation, the company appears overvalued when compared to the hotel sector’s average P/E ratio of approximately 43x.
- Price to Book Value (P/BV) and Return on Net Worth (RoNW):
Price to Book Value: A price to book value of 3.66 reflects the company’s valuation as expensive, at a time when the company is not even generating profits.
RoNW: -1.82% return on net worth indicates that the company is not effectively utilizing its equity capital.
- Debt Levels: The total debt has increased from ₹3,291.07 crore in FY22 to ₹3,682.13 crore in FY24, which is significantly higher compared to its net assets. So, the high debt-to-equity ratio could put pressure on future cash flows.
- GMP and IPO Price Band: With a price band of ₹610 to ₹643 per share and a GMP of ₹63, the market appears to show limited interest, suggesting a potential listing gain of around 10%. However, it should not be the only factor to consider when making an investment decision in a company.
Strengths
- Premium Asset Portfolio: Ventive Hospitality operates a well-diversified portfolio of luxury hotels and resorts across India and the Maldives, catering to business, leisure and spiritual travellers.
- Strong Global Partnerships: The company collaborates with internationally renowned operators like Marriott, Hilton and Atmosphere, enhancing brand credibility and operational excellence.
- Dedicated Asset Management Team: Ventive Hospitality has a dedicated asset management team that works closely with hotel operators. They oversee critical functions such as procurement, marketing strategies and capital expenditure planning.
- Strategic Growth through Acquisitions: Ventive Hospitality has a proven track record of acquiring and developing premium properties, ensuring consistent asset expansion and revenue growth.
- Prioritise ESG: The company claims to prioritise strong Environmental, Social and Governance (ESG) practices. Their management actively integrates ESG initiatives into business goals, monitors progress and identifies areas for improvement.
- Experienced Promoters and Leadership: Promoted by Atul I. Chordia and backed by prominent investors, the company’s leadership brings extensive expertise in hospitality development and asset management.
- Positioned to Capture Industry Growth: The Indian hospitality sector is expected to witness significant growth driven by rising tourism, increased domestic travel and demand for luxury accommodations, positioning Ventive Hospitality for long-term success.
Risks
Here are some of the risk factors involved in this company’s IPO, that investors should know before subscribing to the issue. These risk factors have been highlighted by the company in its Red Herring Prospectus (RHP):
- High Dependence on Third-Party: The company relies on third-party operators for the quality of services at its hospitality assets. These assets are operated by or franchised from third-party brands. Any negative impact on the reputation of these assets or brands, or failure in the quality control systems, could adversely affect the company’s business, financial performance and operations.
- Revenue Concentrated from a few Areas poses Geographic Risks: Before the recent acquisitions, the company’s total income was derived solely from assets located in Pune. However, a large portion of its total income now comes from assets concentrated in Pune and the Maldives, accounting for 58.40% and 32.03% of the proforma total income for the six months ended September 30, 2024, respectively. Any adverse developments in these locations could have a significant impact on the company’s operations and financial position.
- High Debt Levels: The company’s total borrowings stand at ₹3,682.13 crore, which may impact financial flexibility.
- Profitability Concerns: Despite revenue growth, Ventive Hospitality reported losses in FY24, indicating operational challenges.
- Economic Sensitivity: The hospitality sector is heavily influenced by economic fluctuations, which can impact occupancy and revenue.
All the above-mentioned risks should be considered by investors before deciding to invest in the IPO.
Opinion
Although the company has managed to increase its revenues each year, its weak fundamentals characterized by high debt and lack of profitability suggest that the IPO is overvalued. As a result, the initial suggestion is to avoid this IPO for the time being. You can review the points below to help make a more informed decision:
- Long-Term Investors: Based on the company’s performance in FY24, the issue seems overpriced. Therefore, investors should stay away from the IPO at this moment, at least until the company becomes profitable.
- For Short-Term Investors: Short-term traders or investors should pay attention to the GMP trend on the listing day for any short-term gains, which doesn’t look that good as of now with only 10% return on the listing date.
Therefore, my suggestion would be to avoid this IPO. However, if you are determined to invest in this company, consider applying only if:
- Your risk tolerance is high.
- You believe in the long-term growth potential of the luxury hospitality sector.
Otherwise, it would be better to stay away from this IPO and consider alternatives with stronger financials and valuations.
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Additional Details
Promoter Holding
Mr. Atul I. Chordia, Atul I. Chordia HUF, Premsagar Infra Realty Private Limited, BRE Asia ICC Holdings Limited and BREP Asia III India Holding Company VI Private Limited are the promoters of the company. Their shareholding before and after the issue is as follows:
| Pre Issue Shareholding | 99.59% |
| Post Issue Shareholding |
Ventive Hospitality IPO Allotment Status: Check Now
Ventive Hospitality Limited Contact Details
Address: 2nd Floor, Tower D, Tech Park One Yerwada, Pune – 411006
Phone: +91-2069061900
Email: [email protected]
Website: https://www.ventivehospitality.com/
Ventive Hospitality IPO Registrar Details
Registrar: Kfin Technologies Limited
Address: KFintech, Tower-B, Plot No 31 & 32, Financial District, Nanakramguda, Gachibowli, Hyderabad, Telangana – 500032
Phone: 04067162222, 04079611000
Email: [email protected]
Website: https://kosmic.kfintech.com/ipostatus/
Disclaimer: We are not a SEBI-registered research analyst. This article is written solely for educational purposes and should not be interpreted as investment advice or recommendations. The stock market involves significant risks, so we encourage you to seek guidance from a financial advisor before making any investment decisions.
FAQs
Q1. What is Ventive Hospitality IPO?
Ventive Hospitality IPO is a book-built issue of fresh issue, where the company aims to raise ₹1,600 crore through this IPO.
Q2. What is the price band of Ventive Hospitality IPO?
The price band of this IPO has been fixed at ₹610 to ₹643 per share. This price range presents a good opportunity for investors.
Q3. What are the important dates for Ventive Hospitality IPO?
The IPO opens on 20 December 2024 and closes on 24 December 2024. The listing of shares will take place on 30 December 2024 on NSE and BSE.
Q4. How many shares are being offered in the Ventive Hospitality IPO?
A total of 2,48,83,358 shares are being offered in the company’s IPO.
Q5. What is the lot size of Ventive Hospitality IPO?
The lot size of Ventive Hospitality IPO is 23 shares.
Q6. How to apply for Ventive Hospitality IPO?
You can apply for Ventive Hospitality IPO online. The application can be made via UPI and the deadline for submission is 24 December 2024.
Q7. What is the expected listing gain for Ventive Hospitality IPO?
The Grey Market Premium (GMP) of the Ventive Hospitality IPO has reached ₹63, indicating an expected listing gain of around 10%.
Q8. Who are the lead managers of Ventive Hospitality IPO?
The lead managers of this IPO are JM Financial Limited, Axis Capital Limited, HSBC Securities & Capital Markets Private Limited, ICICI Securities Limited, IIFL Securities Limited, Kotak Mahindra Capital Company Limited and SBI Capital Markets Limited.
Q9. How to apply for the Ventive Hospitality IPO?
You can apply for the Ventive Hospitality IPO online through ASBA via your bank account. Alternatively, you can apply via UPI through your stockbroker or submit an offline application form through your broker. The deadline for submitting IPO applications is December 24, 2024.
Q10. How to apply for the Ventive Hospitality IPO through Angel One?
To apply for the Ventive Hospitality IPO through Angle One, first Log in to the Angel One application with your credentials. Select the IPO. You will see the IPO Name “Ventive Hospitality IPO”. Click on the Bid button. Confirm your Application. Now go to your UPI app or Net Banking or BHIM app to approve the mandate.
Q11. How to apply for the Ventive Hospitality IPO through 5 Paisa?
To apply for the Ventive Hospitality IPO through 5 Paisa. First, log in to the 5 Paisa application with your credentials. Select the IPO. You will see the IPO Name “Ventive Hospitality IPO”. Click on the Bid button. Confirm your Application. Now go to your UPI app or Net Banking or BHIM app to approve the mandate.
Q12. How to apply for the Ventive Hospitality IPO through Upstox?
Log in to the Upstox application with your credentials. Select the IPO. You will see the IPO Name “Ventive Hospitality IPO”. Click on the Bid button. Confirm your Application. Now go to your UPI app or Net Banking or BHIM app to approve the mandate.
Q13. How to apply for the Ventive Hospitality IPO through IIFL?
Log in to the IIFL application with your credentials. Select the IPO. You will see the IPO Name “Ventive Hospitality IPO”. Click on the Bid button. Confirm your Application. Now go to your UPI app or Net Banking or BHIM app to approve the mandate.
