The ₹1,600 crore-IPO of Ventive Hospitality opens for bidding on Friday, December 20, and can be subscribed until December 24. The company is offering its shares in the range of ₹610-643 apiece and investors can bid for a minimum of 23 equity shares and its multiples thereafter.

The Pune-based firm has raised ₹719.5 crore through its anchor book on December 19, a day before its issue launches for public subscription.

Global investors including Government Pension Fund Global, Florida Retirement System, ABSL Umbrella Ucits Fund, Citigroup Global, Societe Generale, Copthall Mauritius Investment, and Tocu Europe invested in Ventive through the anchor book.

Domestic institutional investors like Quant Mutual Fund, SBI General Insurance, SBI Life Insurance, Tata Alternative Investment Fund, JM Financial MF, Nuvama, Samco MF, and Trust MF also participated in the anchor book.

Ventive Hospitality IPO review

Anand Rathi: Subscribe for long term

Assigning a ‘Subscribe for long term’ rating to the issue, the brokerage said it believes the company is well-positioned to benefit from growing hospitality demand in conjunction with relatively low new supply in their key markets and growing tourism industry.

“We believe that company comes with clear focus on their core strength of developing luxury and upscale hospitality assets and to increase the number of keys across our hospitality assets,” it said.

On valuation parse at the upper price band, the issue is asking for a market cap of ₹15,017 crore. Based on the FY24 earnings, the company is asking a PE of 90x times, which is fully priced.

SBI Securities: The brokerage wrote in its note that the company is valued at FY24 P/E and EV/EBITDA multiples of 90.3x and 48.5x, respectively, based on the upper price band on the post-issue capital.

The company has partnership with renowned brands like JW Marriott, Hilton, The Ritz-Carlton, etc. It has generated 41.0% of revenue from its annuity assets in 1HFY25, which are leased out to marquee tenants like HSBC, Deutsche Bank, Starbucks, etc. Further, the company has robust financial track record of 44.4%/56.2%/139.3% Revenue/EBITDA/PAT CAGR, respectively, over FY22-FY24.

Ventive Hospitality IPO GMP

Shares of Ventive Hospitality are trading at a premium of ₹53 in the unlisted market today.

The grey market operates as an unofficial platform where shares are traded prior to opening of the subscription until the listing day. This unregulated market allows investors to speculate on the pricing.

Ventive Hospitality IPO details

The IPO is entirely a fresh issue of equity shares of up to ₹1,600 crore and no offer-for-sale component.

Ventive Hospitality has reserved shares worth ₹1 crore to the eligible employees of the company, who will get a discount of ₹30 per share. About 75% of the net issue has been reserved for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will get 15% of allocation. However, retail investors will get the remaining 10% of the net issue.

Ventive Hospitality proposes to utilise the net IPO proceeds towards funding the debt payment, including payment of interest accrued thereon.

Ventive Hospitality (formerly ICC Realty) is a joint venture between US-based Blackstone Group and Panchshil Realty. Currently, Panchshil holds a 60% stake in Ventive, while Blackstone owns the remaining 40% stake.

“We are pleased to work with our long-time partner, Panchshil Realty in the upcoming IPO of Ventive Hospitality Ltd — having a portfolio of premium hospitality assets that are operated by global hospitality brands,” Tuhin Parikh, Head of Real Estate – India, Blackstone, said.

Ventive Hospitality is a hospitality asset owner primarily focused on luxury offerings across business and leisure segments in India and the Maldives.

As of September 2024, the company’s portfolio has 11 operational properties, comprising 2,036 keys across the luxury, upper upscale and upscale segments. All of its assets are operated by or franchised from global operators, including Marriott, Hilton, Minor and Atmosphere.

For the six months ended on September 30, 2024, Ventive Hospitality reported a net loss of ₹137.83 crore with a revenue of ₹875.9 crore. The firm’s net loss stood at ₹66.75 crore with a revenue of ₹1,907.38 crore for the financial year 2023-24.

JM Financial, Axis Capital, ICICI Securities, IIFL Securities, Kotak Mahindra Capital Company, SBI Capital Markets and HSBC Securities and Capital Markets (India) Pvt Ltd are the book-running lead managers, while Kfin Technologies Limited is the registrar for the issue.

The allotment for the Ventive Hospitality IPO is expected to be finalised on December 26. The company’s shares will list on BSE, NSE with tentative listing date fixed as December 30.