Ventive Hospitality Limited IPO: 10 Key Things to Know Before Investing
Ventive Hospitality Limited, a leading hospitality asset owner, is all set to launch its ₹1,600 Crore Initial Public Offering (IPO) from December 20 to December 24, 2024. Known for its luxury hospitality offerings across business and leisure segments, the company operates under global brands like Marriott, Hilton, Minor, and Atmosphere. If you are considering investing in this IPO, here are the 10 key things you should know:
- What makes Ventive Hospitality Limited a good opportunity?
Ventive Hospitality Limited specializes in owning and managing luxury hospitality assets in prime locations such as Pune, Bengaluru, and the Maldives. The company operates several high-profile properties, including JW Marriott Pune, The Ritz-Carlton Pune, Conrad Maldives, and Anantara Maldives. With a growing portfolio of luxury and upscale hotels, Ventive is positioned to benefit from the booming tourism and business travel sectors. The company also plans to expand further, with developments in Varanasi and Sri Lanka, making it an attractive option for long-term investors.
- What are the IPO dates, price band, and issue size?
Here are the key details of the IPO:
- IPO Dates: December 20th – 24th, 2024
- Listing Date: December 30th, 2024
- Price Band: ₹610 – ₹643 per share
- Total Issue Size: ₹1,600 Crore
- Face Value: ₹1 per share
- Listing Exchange: BSE, NSE
- Lot Size: 23 Shares
- Promoters: Atul I. Chordia, Atul I. Chordia HUF, Premsagar Infra Realty Pvt. Ltd, BRE Asia ICC Holdings Ltd, BREP Asia III India Holding Co VI Pte. Ltd.
- What is the minimum investment for the IPO?
The minimum investment required for the Ventive Hospitality Limited IPO is ₹14,030, based on a lot size of 23 shares at the lower price band of ₹610 per share. For a higher likelihood of allotment, it is recommended to apply at the upper price band, which will cost ₹14,789 (23 shares at ₹643 per share).
- What does the company do?
Founded in 2002, Ventive Hospitality Limited focuses on owning and managing luxury hotels and resorts across India and the Maldives. The company operates under renowned global brands such as Marriott, Hilton, and Minor. Its portfolio includes 11 operational properties, totaling 2,036 keys, in the luxury, upper upscale, and upscale segments. The company targets key business hubs like Pune and Bengaluru and top tourist destinations like the Maldives, catering to both business and leisure travelers.
- What is the objective of the IPO?
The primary objectives of the Ventive Hospitality IPO are:
- To repay or prepay certain borrowings and related interest.
- To invest in step-down subsidiaries (SS & L Beach Private Limited and Maldives Property Holdings Private Limited) and pay related interest.
- To fund general corporate purposes.
- How much is reserved for retail and other investors?
The IPO allocation is as follows:
- Qualified Institutional Buyers (QIBs): Up to 75%
- Non-Institutional Investors (NIIs): At least 15%
- Retail Investors: At least 10%
- What are the key strengths and risks?
Strengths:
- Dominant market share in Pune (64% of luxury hotel inventory).
- Strong presence in luxury tourism hotspots like the Maldives.
- Proven track record in developing and acquiring premium hospitality assets.
- Strategic partnerships with global hotel brands such as Marriott and Hilton.
- Focus on sustainability with net-zero emissions target by FY34.
Risks:
- Integration challenges related to the recent acquisition of new properties.
- Dependence on third-party brands (Marriott, Hilton), with the risk of contract terminations.
- Exposure to regional disruptions in Pune and the Maldives, where a large portion of revenue is concentrated.
- High finance costs due to acquisition-related debt.
- Vulnerability to seasonality and cyclical changes in the hospitality industry.
- What is the financial performance of Ventive Hospitality Limited?
The company’s financial performance over the years shows the following:
| Period Ended | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets (₹ Cr) | ₹8,714.47 | ₹951.97 | ₹779.29 | ₹824.91 |
| Revenue (₹ Cr) | ₹372.78 | ₹477.98 | ₹430.81 | ₹229.17 |
| Profit After Tax (₹ Cr) | ₹20.76 | ₹166.32 | ₹131.27 | ₹29.43 |
- What is the allotment and listing timeline?
- Basis of Allotment: December 26, 2024
- Refund Initiation: December 27, 2024
- Shares Credited to Demat Accounts: December 27, 2024
- Listing Date: December 30, 2024
- Should you invest in Ventive Hospitality Limited IPO?
Ventive Hospitality Limited offers a promising investment opportunity with its strong portfolio of luxury hospitality assets, partnerships with leading global brands, and solid expansion plans. However, investors should carefully assess the risks, such as reliance on third-party brands, regional revenue concentration, and the company’s past financial performance.
Consider your risk appetite and investment goals before deciding to participate in this IPO.
