The Ventive Hospitality IPO is set to open for bidding on Friday, December 20, 2024, and will conclude on Tuesday, December 24, 2024. Pune-based Ventive Hospitality, a luxury hospitality company, aims to raise ₹1,600 crore through this IPO, which is entirely a fresh share sale.
Key Details of the IPO
| Details | Description |
|---|---|
| IPO Dates | December 20, 2024 – December 24, 2024 |
| Price Band | ₹610–₹643 per share |
| Lot Size | 23 shares |
| Issue Size | ₹1,600 crore |
| Offer Type | Fresh Issue |
| Allocation | QIBs: 75%, NIIs: 15%, Retail Investors: 10% |
| Employee Reservation | ₹1 crore, with a discount of ₹30 per share |
| Anchor Book Opening Date | December 19, 2024 |
| Listing Date | December 30, 2024 |
| Listing Platforms | BSE and NSE |
| Registrar | Kfin Technologies |
| Lead Managers | JM Financial, Axis Capital, HSBC Securities, Kotak Mahindra, etc. |
Company Overview
Incorporated in February 2002, Ventive Hospitality focuses on developing and managing luxury hotels and resorts, catering to business and leisure travelers. The company operates 11 hospitality assets across India and the Maldives, with 2,036 keys under globally recognized brands like Marriott, Hilton, and Atmosphere.
Location Highlights:
- Prime cities: Pune and Bengaluru.
- Tourist hotspots: Maldives.
- Cultural centers: Varanasi.
Financial Performance
The company’s financials indicate a challenging landscape but promising revenue streams:
| Period | Revenue (₹ Cr) | Net Loss (₹ Cr) |
|---|---|---|
| H1 FY25 | 875.9 | 137.83 |
| FY24 | 1,907.38 | 66.75 |
The company plans to use the IPO proceeds to repay/prepay borrowings, settle interest obligations, and fund general corporate purposes.
Reservation and Allocation Details
- 75% Reserved for QIBs: Targeting institutional investors such as mutual funds and banks.
- 15% Reserved for NIIs: Allocated to high-net-worth individuals.
- 10% Reserved for Retail Investors: For individual bidders with a smaller ticket size.
Eligible employees of Ventive Hospitality have ₹1 crore worth of shares reserved, with a ₹30 per share discount.
Key Takeaways for Investors
- Upscale Portfolio: Ventive Hospitality operates high-end properties in strategic locations, leveraging global hospitality partnerships to attract premium clientele.
- Sector Potential: With tourism and business travel recovering post-pandemic, the luxury hospitality segment offers growth potential.
- Strong Backing: The IPO is managed by reputable book-running lead managers and aims to attract institutional and retail investors alike.
- Challenging Financials: Despite growing revenue, consistent net losses pose risks for long-term sustainability.
How to Apply for the IPO
Investors can apply through their broker’s platform or directly through the ASBA (Application Supported by Blocked Amount) feature in their bank accounts. Ensure to review the price band and choose a multiple of 23 shares for bidding.
Conclusion
The Ventive Hospitality IPO offers a mix of potential growth backed by a robust portfolio and global hospitality alliances, but investors should weigh the risks associated with its financial performance. With a listing date set for December 30, 2024, this IPO provides an opportunity to tap into the recovering hospitality sector, especially for those looking to diversify their portfolios.
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