Ventive Hospitality’s Rs 1,600 crore initial public offering (IPO) opened for subscription today, Friday, December 20. The subscription window for this book-built issue, which is entirely a fresh issue of 2.5 crore shares, will close on Tuesday, December 24. Ahead of its public issue, the Blackstone-backed firm raised Rs 719.5 crore from anchor investors. It allotted 1,11,90,513 shares to anchor investors for Rs 643 per share, with a face value of Rs 1 per share.
Some of the top anchor investors include 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.
Ventive Hospitality IPO GMP
According to stock market sources, the previous grey market premium (GMP) of the Ventive Hospitality IPO was Rs 66. With the upper price band of Rs 643 per share, the estimated listing price of the shares is Rs 709, giving a 10% premium. The price band of the issue is between Rs 610 and Rs 643 per share.
Ventive Hospitality IPO Dates
The IPO opens for subscription on Friday, December 20, and closes on Tuesday, December 24.
Ventive Hospitality IPO Size
This is a fresh issue of 2.49 crore shares to raise Rs 1,600 crore. There is no offer for sale in this issue.
Ventive Hospitality IPO Reservation
- 75% of the net issue is reserved for qualified institutional buyers (QIBs).
- 15% of the net issue is reserved for non-institutional investors.
- 10% of the net issue is reserved for retail investors.
Ventive Hospitality IPO Lot Size
The minimum lot size for the application is 23 shares. With the upper price band at Rs 643 per share, retail investors need to make a minimum investment of Rs 14,789.
Ventive Hospitality IPO Allotment and Listing Dates
As per SEBI’s T+3 rule, a company must list its shares three business days after the IPO closing date. For Ventive Hospitality, which is closing its IPO on December 24, the shares will be listed on BSE and NSE on Monday, December 30. Share allotment will be finalized on Thursday, December 26, as December 25 is a Christmas holiday.
Ventive Hospitality IPO Book Managers
The book-running lead managers for 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. KFin Technologies will act as the registrar for the issue.
The objective of the Issue
According to the company’s Red Herring Prospectus (RHP), the net proceeds from the IPO will be used to repay borrowings incurred by the company and its step-down subsidiaries, SS&L Beach Private Limited and Maldives Property Holdings Private Limited. The funds will also be used for general corporate purposes.
Business Overview
Ventive Hospitality focuses on luxury offerings in the business and leisure segments. The company operates or franchises hospitality properties with global operators, including Marriott, Hilton, Minor, and Atmosphere.
Financial Performance
For FY22, Ventive Hospitality’s revenue from operations was Rs 2,291.70 million. This increased to Rs 4,308.13 million in FY23 and Rs 4,779.80 million in FY24. In the first half of FY24, its operating revenue was Rs 3,727.78 million. Total comprehensive income for FY22, FY23, and FY24 was Rs 297 million, Rs 1,312.02 million, and Rs 1,666.82 million, respectively. However, for the six months ended September 30, 2024, the company incurred a loss of Rs 348.66 million due to recent acquisitions.
Ventive Hospitality IPO Review
Experts highlight the company’s strength lies in its premium hospitality properties and a strong track record of development and acquisition-led growth in India and the Maldives. In terms of valuation, the company appears to be relatively cheaper compared to its peers, based on its Price-to-Earnings (PE) ratio. As per Mint (the newspaper), brokerage firm SBI Securities notes that the company is valued at 90.3 times the FY24 PE ratio and 48.5 times the EV/EBITDA multiple based on the upper price band and post-issue capital.
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