Ventive Hospitality IPO: Price Band, Financials, Key Dates, GMP — All You Need To Know

The initial public offering of Blackstone-backed Ventive Hospitality Ltd. is scheduled to open on Friday. The IPO consists purely of a fresh issue worth Rs 1,600 crore.

The price band has been set in the range of Rs 610–643 per share. The market value at the upper end of the price band is Rs 15,017 crore.

At present, Panchshil holds a 60% stake in Ventive Hospitality, while Blackstone owns the remaining 40%. The joint venture operates a portfolio of 11 operational assets in India and Maldives, including JW Marriott in Pune.

The company plans to use up to Rs 1,400 crore of the share-sale proceeds to fund repayment and prepayments of debts, according to the red herring prospectus.

• Issue opens: Dec. 20.

• Issue closes: Dec. 24.

• Issue price: Rs 610–643.

• Offer for sale: nil

• Fresh issue: Rs 1,600 crore.

• Total issue size: Rs 1,600 crore.

• Lot size: Minimum 23 shares, and then in multiples thereof.

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

The company operates 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.

Ventive Hospitality reported a 27% rise in net profit at Rs 166 crore in the last financial year from Rs 131 crore in the previous fiscal. Revenue was up 11% to Rs 478 crore.

Operating income, or earnings before interest, taxes, depreciation, and amortisation, rose 27% to Rs 284 crore. The Ebitda margin expanded to 59.4% from 55.5%.

Ventive Hospitality's loss can be attributed to a relatively higher other expenses component of Rs 128 crore during the first half. 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.

• Grow portfolio and increase market share in Pune and Maldives through organic and inorganic growth opportunities the include renovation and refurbishments plans.

• Focus on expanding to regions offering significant and compelling growth prospects and broaden the company's geographic footprint. These include Varanasi and Bengaluru; and Pottuvil near Yala East National Park and Arugam Bay Beach in Sri Lanka.

• Increase the number of keys across the hospitality assets by 367 from 2,036 in March 2024 to 2,403 keys by financial year 2028.

• The company has also phased out the corporate accounts in India that had generated lower average room rates over the last few years.

• Ventive Hospitality does not have a consolidated operating history to show the overall performance of the company.

• The group has on a pro forma basis in financial year 2024 and financial year 2022 reported losses.

• Most of the hospitality assets are operated by or franchised from Marriott and Hilton. While these agreements with third-party operators and franchisors are long term, if any are cancelled or not renewed then it will affect the cash flow and financial conditions adversely.

• As most of the income for the company is derived from the hospitality assets, any impact on them would affect its financial conditions.

• Since some of the income depends on geographical areas like Maldives, any changes in taxes or any physical impact on these places can also impact the company's income.

• A decline in demand for office for office and retail properties can impact the revenue of the company as the segment contributed 24.44% of the total revenue for financial year 2024.

The grey market premium of Ventive Hospitality IPO was nil as of 10:26 a.m. on Dec. 18, according to InvestorGain. This implies shares of the company will likely list at Rs 643 apiece.

Notably, GMP or grey market price is not an official price quote for the stock and is based on speculation.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisers and read red herring prospectus thoroughly before placing bids.