The much-awaited listing of Ventive Hospitality IPO is set to happen today, December 30, 2024. Following a strong response from investors during its subscription period, Ventive Hospitality shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
IPO Details and Subscription Overview
Ventive Hospitality’s ₹1,600-crore IPO opened for subscription from December 20 to December 24, with its allotment finalized on December 26. The IPO was priced within a band of ₹610 to ₹643 per share, and the entire issue comprised 2.49 crore fresh equity shares.
The IPO received an enthusiastic response from investors, with total subscription figures reaching 9.82 times the offered shares. Among investor categories:
- Retail investors subscribed 5.94 times their allocated portion.
- Non-Institutional Investors (NII) subscribed 13.87 times.
- Qualified Institutional Buyers (QIBs) recorded a subscription of 9.08 times.
The IPO was managed by several leading financial institutions, including JM Financial, Axis Capital, HSBC Securities, and SBI Capital Markets, with Kfin Technologies as the IPO registrar.
Grey Market Premium and Expected Listing Price
According to grey market trends, Ventive Hospitality IPO shares are trading at a premium of ₹70 over their issue price. Based on the upper price band of ₹643, this indicates an estimated listing price of ₹713 per share, translating to an 11% premium.
Stock market observers and analysts expect a positive debut, with the shares likely to be listed in the premium range of 10% to 12%. The strong demand during the subscription period, coupled with favorable grey market sentiment, suggests a robust opening for Ventive Hospitality shares.
Company Overview and Growth Potential
Ventive Hospitality Limited operates 11 luxury properties, including prestigious hotels like JW Marriott Pune and The Ritz-Carlton Pune. By partnering with global hospitality brands such as Marriott and Hilton, the company has established a strong presence in the premium hospitality segment.
Key highlights of Ventive Hospitality’s business model include:
- 41% of its revenue comes from annuity assets, ensuring stable cash flows.
- A 44% Compound Annual Growth Rate (CAGR) in revenue over the past five years demonstrates its strong financial performance.
- Plans for expanding its footprint, leveraging its partnerships with top-tier global operators.
However, the company faces some challenges. Its reliance on third-party operators for 78% of its hotel keys exposes it to potential reputational risks. Despite this, analysts recommend holding shares for medium to long-term gains, given the company’s financial stability and growth trajectory.
Expert Opinions on the Listing
Arun Kejriwal, Founder of Kejriwal Research and Investment Services, commented:
“Ventive Hospitality IPO has garnered decent interest despite being priced at high valuations. A positive debut is expected, with listing gains in the range of 10% to 12%. Investors can consider holding the stock for potential long-term appreciation.”
Similarly, Akriti Mehrotra, Research Analyst at StoxBox, highlighted the company’s strong fundamentals:
“The company’s robust revenue growth and diversified portfolio make it a promising investment. The IPO has been well-received, and a listing premium of around 11% is anticipated.”
Listing Details
Ventive Hospitality shares will be listed on BSE and NSE today. The stock will be available for trading from 10:00 AM following the Special Pre-open Session (SPOS).
According to a notice by the BSE:
“Trading Members of the Exchange are hereby informed that effective from Monday, December 30, 2024, the equity shares of Ventive Hospitality Limited shall be listed and admitted to dealings on the Exchange in the list of ‘B’ Group of Securities.”
Final Thoughts
The Ventive Hospitality IPO listing marks another significant event for the Indian stock market. While the IPO has drawn attention for its high valuation, the company’s strong growth potential, stable revenue model, and premium partnerships position it well for future success. Investors can expect a solid debut with potential for medium to long-term gains.
Disclaimer
This article is for informational purposes only and should not be considered financial advice. Investors are encouraged to conduct their research and consult financial experts before making investment decisions.
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