Ventive Hospitality IPO GMP Today: Ventive Hospitality Limited, a leading luxury hospitality asset owner, has announced its Initial Public Offering (IPO). The IPO aims to raise substantial funds to fuel its growth plans and reduce its debt burden. Investors are keenly tracking the Grey Market Premium (GMP) as an indicator of the potential success of this offering. This article provides comprehensive information about the Ventive Hospitality IPO, including GMP, company background, financials, and strengths.
IPO Details
Here are the complete details about the Ventive Hospitality IPO:
IPO Opening and Closing Dates: The IPO opens on 20th December 2024 and closes on 24th December 2024.
Price Band: The price band is set at ₹610 to ₹643 per share.
Lot Size: Investors can bid for a minimum of 23 shares per lot.
Issue Size:
Fresh Issue: The company plans to raise ₹1,600 crore through a fresh issue of shares.
No Offer for Sale (OFS): The IPO does not include any sale of shares by existing shareholders.
Listing Date: Shares are expected to be listed on 30th December 2024 on both BSE and NSE.
Grey Market Premium (GMP) Today
Ventive Hospitality IPO GMP Today: As of 20th December 2024, the Grey Market Premium (GMP) for Ventive Hospitality IPO stands at ₹66 per share. GMP reflects the premium at which shares are trading in the unofficial market before listing.
Expected Listing Price:
Ventive Hospitality IPO GMP Today: Based on the upper price band of ₹643 and the current GMP of ₹66, the estimated listing price is ₹709 per share.
This indicates a potential premium of approximately 10.26% over the issue price.
Company Overview
Ventive Hospitality IPO GMP Today: Ventive Hospitality Limited was incorporated in 2002 and specializes in owning luxury hospitality assets across business and leisure destinations. The company’s portfolio includes iconic properties associated with global brands such as JW Marriott, Ritz-Carlton, and Conrad. With a strategic expansion approach, the company has established itself as a key player in the premium hospitality sector.
Financial Performance
Ventive Hospitality IPO GMP Today: Ventive Hospitality has demonstrated strong financial performance over the years, backed by its diversified portfolio and efficient operations. Below are its key financial metrics:
Revenue from Operations:
FY22: ₹2,291.70 crore.
FY23: ₹4,308.13 crore.
FY24: ₹4,779.80 crore.
Net Profit:
FY22: ₹294.31 crore.
FY23: ₹1,312.73 crore.
FY24: ₹1,663.17 crore.
EBITDA Margin:
Improved to 24.76% in FY24, showcasing strong operational efficiency.
Debt-to-Equity Ratio:
Reduced to 0.85, reflecting a significant improvement in the company’s financial health.
Strengths of Ventive Hospitality
1. Premium Asset Portfolio:
The company owns luxury hospitality properties under globally recognized brands, attracting premium clientele.
2. Strategic Locations:
Properties are located in key business hubs and leisure destinations, ensuring consistent demand.
3. Strong Financial Growth:
Robust revenue and profit growth over the years highlight the company’s operational excellence.
4. Experienced Management Team:
Ventive Hospitality’s leadership comprises seasoned professionals with extensive experience in the hospitality sector.
5. Operational Efficiency:
The company’s focus on operational excellence has resulted in improved EBITDA margins and reduced debt levels.
Risks and Concerns
1. High Competition:
The luxury hospitality sector is highly competitive, with many established players vying for market share.
2. Economic Sensitivity:
The company’s performance is closely tied to economic conditions, as hospitality is a discretionary spending segment.
3. Debt Levels:
Although the company has reduced its debt, it still carries a significant financial burden, which could impact profitability.
4. Regulatory Risks:
Operating in multiple locations exposes the company to various regulatory compliance challenges.
Use of IPO Proceeds
The funds raised through the IPO will be utilized for:
Debt Repayment:
Up to ₹1,400 crore will be used to repay or prepay borrowings, reducing financial leverage.
General Corporate Purposes:
The remaining funds will be allocated to operational and expansion activities.
Subscription Details
Ventive Hospitality IPO GMP Today: On the first day of subscription, the IPO received bids for 9,01,623 shares against the 1,44,34,453 shares on offer, reflecting an overall subscription of 6%. Retail investors subscribed 28%, while the non-institutional investor (NII) category saw a subscription of 4%. The employee reserved portion was subscribed 81%, while Qualified Institutional Buyers (QIBs) had not yet subscribed.
Should You Subscribe?
Ventive Hospitality IPO GMP Today: The Ventive Hospitality IPO offers a promising opportunity for investors, with a strong financial track record, premium asset portfolio, and robust GMP trends. Here are some considerations:
For Short-Term Investors:
The GMP suggests moderate listing gains, making it attractive for short-term profits.
For Long-Term Investors:
Ventive Hospitality IPO GMP Today: The company’s growth potential, strategic expansion, and operational efficiency make it a good option for long-term investment.
However, potential investors should evaluate the risks involved and consider their financial goals before subscribing.