JW Marriott-Owner Ventive Hospitality To Launch IPO On Dec. 20

Blackstone-backed Ventive Hospitality Ltd. will open its initial public offering for subscription on Dec. 20, which will continue till Dec. 24. The Blackstone-backed hotel operator has downsized its maiden public offer to Rs 1,600 crore from the earlier planned Rs 2,000 crore.

The offer is purely a fresh issue, and up to Rs 1,400 crore of the share sale proceeds will be used to fund repayment and prepayments of debts, according to the red herring prospectus. As of the September quarter, the hotels owner has a Rs 3,610 debt on its books. Entities backed by promoters Blackstone and Panchshil Realty currently hold an 81% stake in the company.

While 75% of the offer is reserved for qualified institutional buyers, 10% is available for retail investors and another 15% for non-institutional bidders. The anchor book for the IPO will be launched on Dec. 19.

NDTV Profit had earlier reported that the company is looking for a January listing.

The joint venture operates a portfolio of 11 assets in India and Maldives, including JW Marriott, Pune. The company commands 2,036 hotel keys across the luxury, upper upscale and upscale segments. Other properties include Marriott Suites, Double Trees by Hilton, Marriott Aloft Whitefield and Marriott Aloft ORR in Bengaluru.

• Revenue rose 11% to Rs 478 crore versus Rs 431 crore.

• Ebitda rose 19% to Rs 284 crore versus Rs 239 crore.

• Ebitda margin rose to 59.4% versus 55.5%.

• Net profit rose 27% to Rs 166 crore vs Rs 131 crore.

The company reported a net loss of Rs 21 crore in the half year ending Sept. 30, and has not paid a dividend since fiscal 2023, when it paid Rs 97 crore to shareholders.

Ventive's half-year loss can be attributed to a relatively higher other expenses component of Rs 128 crore. Revenue stood at Rs 373 crore and operating income was at Rs 164 crore. The operating income's margin against the top line came up to 44.1%.

As of Sept. 30, the company has a cash balance of Rs 172 crore.