Ventive Hospitality IPO: Ventive Hospitality Limited, a prominent luxury hospitality asset owner, has launched its Initial Public Offering (IPO) to raise ₹1,600 crore. The IPO is open for subscription from December 20, 2024, to December 24, 2024. This article provides comprehensive details about the IPO, including the company’s background, financial performance, and the latest Grey Market Premium (GMP).
Company Overview:
Ventive Hospitality IPO: Incorporated in 2002, Ventive Hospitality focuses on owning luxury hospitality assets across business and leisure segments. Their portfolio includes premium properties associated with renowned global brands such as JW Marriott, The Ritz-Carlton, and Conrad. The company has strategically expanded through acquisitions and development initiatives, establishing a significant presence in the hospitality sector.
IPO Details:
Issue Period: December 20, 2024 – December 24, 2024
Price Band: ₹610 to ₹643 per equity share
Face Value: ₹1 per share
Lot Size: 23 shares
Total Issue Size: ₹1,600 crore (entirely a fresh issue of 2.49 crore shares)
Listing Date: Expected on December 30, 2024, on both BSE and NSE
Grey Market Premium (GMP):
Ventive Hospitality IPO: As of December 20, 2024, the GMP for Ventive Hospitality’s IPO is approximately ₹66 per share.
Considering the upper price band of ₹643, this suggests an estimated listing price of ₹709 per share, indicating a potential premium of about 10%.
Financial Performance:
Ventive Hospitality IPO: Ventive Hospitality has demonstrated robust financial growth in recent years:
Revenue from Operations:
FY2022: ₹2,291.70 crore
FY2023: ₹4,308.13 crore
FY2024: ₹4,779.80 crore
Profit After Tax (PAT):
FY2022: ₹294.31 crore
FY2023: ₹1,312.73 crore
FY2024: ₹1,663.17 crore
EBITDA:
FY2022: ₹1,245.97 crore
FY2023: ₹2,500.92 crore
FY2024: ₹3,005.59 crore
Total Borrowings:
FY2022: ₹4,190.01 crore
FY2023: ₹4,251.67 crore
FY2024: ₹4,126.08 crore
Net Worth:
FY2022: ₹2,114.57 crore
FY2023: ₹1,638.72 crore
FY2024: ₹3,305.54 crore
Return on Net Worth (RoNW):
FY2022: 13.92%
FY2023: 80.11%
FY2024: 50.31%
Strengths of Ventive Hospitality:
1. Premium Asset Portfolio:
Ventive Hospitality owns luxury properties under globally recognized brands, enhancing its market position.
2. Strategic Expansion:
The company has effectively expanded through acquisitions and developments, increasing its footprint in key markets.
3. Strong Financial Growth:
Consistent revenue and profit growth over the past three fiscal years indicate robust operational performance.
4. Experienced Management Team:
Led by industry veterans, the management’s expertise contributes to strategic decision-making and growth.
Risks and Concerns:
1. High Debt Levels:
Significant borrowings may impact financial flexibility and profitability.
2. Market Competition:
The hospitality industry is highly competitive, with numerous players vying for market share.
3. Economic Sensitivity:
The company’s performance is closely tied to economic conditions, affecting discretionary spending on luxury hospitality.
Use of IPO Proceeds:
The net proceeds from the IPO are planned to be utilized for:
Debt Repayment:
Up to ₹1,400 crore will be used to repay or prepay certain borrowings, reducing financial leverage.
General Corporate Purposes:
The remaining funds will support general corporate activities, enhancing operational capabilities.
Subscription Details:
Ventive Hospitality IPO: On the first day of subscription, December 20, 2024, the IPO received bids for 9,01,623 shares against the 1,44,34,453 shares on offer, reflecting an overall subscription of 6%.
The retail portion was subscribed 28%, the non-institutional investors (NII) portion 4%, and the employee reserved portion 81%. Qualified Institutional Buyers (QIBs) had not yet subscribed at that time.