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Deven Choksey Research Report
Blackstone-backed Ventive Hospitality Ltd. will launch its initial public offering on December 20 and the offer closes for subscription on Dec. 24. The leading hospitality asset owner has fixed the price band in the range of Rs 610-643 Apiece.
The IPO consists purely of a fresh issue worth Rs 1,600 crore.
The shares will be listed on both the National Stock Exchange and the BSE on Dec. 30
The allotment for Ventive Hospitality IPO is expected to be finalised on Dec. 26.
Objects of the Offer
Repayment of borrowings.
General Corporate Purpose.
Outlook and Valuation:
Ventive Hospitality operates in India’s expanding hospitality sector, with the spiritual tourism market projected to grow at a CAGR of 9%, from $60 billion in 2023 to $130 billion by 2032. Ventive Hospitality has demonstrated strong capabilities in acquiring and developing hotel assets across diverse geographies, driving a revenue CAGR of 44% and PAT CAGR of 138% between FY22 and FY24.
In FY24, its return on equity of 50% and return on capital employed of 31% outperformed industry peers. Despite these strengths, Ventive Hospitality reported pro forma losses in FY22 and FY24, The IPO is valuing the company at a moderate enterprise value/Ebitda multiple of 21 times post acquisition based on proforma financials.
The company's dependence on third-party operators and sensitivity to seasonal business cycles add further complexity. Considering Ventive Hospitality's growth trajectory and financial profile, we recommend a "Neutral" rating for the IPO.
Click on the attachment to read the full IPO report:
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