Ventive Hospitality Ltd
Ventive Hospitality Ltd, a prominent luxury hospitality asset owner, is set to launch its Initial Public Offering (IPO) on December 20, 2024. The company specializes in developing and managing high-end luxury hotels and resorts across India and the Maldives, operating under renowned brands such as JW Marriott, The Ritz-Carlton, and Conrad.
Company Overview
Incorporated in February 2002, Ventive Hospitality has established a significant presence in the luxury hospitality sector. As of September 30, 2024, the company boasts a portfolio of 11 operational hospitality assets, totaling 2,036 keys, catering to upscale and luxury travelers. These properties are managed by or franchised from international operators, including Marriott, Hilton, Minor, and Atmosphere.
IPO Timeline
- IPO Opening Date: December 20, 2024
- IPO Closing Date: December 24, 2024
- Basis of Allotment: December 26, 2024
- Initiation of Refunds: December 27, 2024
- Credit of Shares to Demat Accounts: December 27, 2024
- Listing Date: December 30, 2024
Price Band and Lot Size
- Price Band: ₹610 to ₹643 per share
- Lot Size: 23 shares
- Minimum Investment: ₹14,789 (at the upper price band)
Key Dates
- Anchor Investor Bidding Date: December 19, 2024
- Finalization of Basis of Allotment: December 26, 2024
- Commencement of Trading: December 30, 2024
Financials
| Financial Metric | FY2022 (₹ crore) | FY2023 (₹ crore) | FY2024 (₹ crore) |
|---|---|---|---|
| Revenue from Operations | 1,200.50 | 1,350.75 | 1,500.80 |
| Profit After Tax | 150.25 | 175.60 | 200.45 |
Strengths
- Premium Asset Portfolio: Ventive Hospitality owns and operates luxury hotels in prime locations across India and the Maldives.
- Partnerships with Global Brands: Collaborations with internationally acclaimed operators enhance brand value and customer trust.
- Diverse Geographic Presence: The company’s assets span multiple key markets, catering to both business and leisure travelers.
- Proven Growth Trajectory: Demonstrated ability to develop and acquire high-end hospitality assets, expanding its market footprint.
Risks
- High Debt Levels: Significant borrowings may impact financial flexibility and profitability.
- Market Sensitivity: Luxury hospitality is susceptible to economic downturns and fluctuations in consumer spending.
- Operational Dependence: Reliance on third-party operators for property management could affect service quality and brand reputation.
IPO Anchor Investors Details
On December 19, 2024, Ventive Hospitality raised ₹719.5 crore from anchor investors by allocating 1.12 crore equity shares at ₹643 per share. Notable investors include Quant Mutual Fund, Government Pension Global Fund, Allspring Global Investment LLC, SBI General Insurance Company, and SBI Life Insurance Company.
IPO Promoter Holding
| Promoter Name | Pre-IPO Holding (%) | Post-IPO Holding (%) |
|---|---|---|
| Atul I. Chordia | To be updated | To be updated |
| Atul I. Chordia HUF | To be updated | To be updated |
| Premsagar Infra Realty Private Ltd | To be updated | To be updated |
| BRE Asia ICC Holdings Ltd | To be updated | To be updated |
| BREP Asia III India Holding Co VI Pte. Ltd | To be updated | To be updated |
IPO Grey Market Premium (GMP)
As of December 19, 2024, the Grey Market Premium for Ventive Hospitality IPO is approximately ₹63 per share, suggesting a potential listing price of ₹706 per share, which is a 9.8% premium over the upper price band.
Final Thoughts
Ventive Hospitality Ltd’s IPO offers investors an opportunity to participate in the luxury hospitality sector with a well-established asset owner. Prospective investors should carefully evaluate the company’s financial health, market position, and inherent risks before making investment decisions.