Ventive Hospitality, a luxury hospitality asset owner, has launched its ₹1,600 crore IPO, opening for bidding on Friday, December 20, and closing on December 24. The company is offering shares in the range of ₹610-643 each, with a minimum bid of 23 equity shares, and multiples thereafter.
Anchor Book Investment
Ahead of the public subscription, Ventive raised ₹719.5 crore through its anchor book on December 19. Notable global investors including the Government Pension Fund Global, Florida Retirement System, Citigroup Global, and Societe Generale, along with domestic institutional players like Quant Mutual Fund, SBI Life Insurance, and Tata Alternative Investment Fund, have backed the company through this anchor investment.
Company Overview
Ventive Hospitality, previously known as ICC Realty, operates in a joint venture with Blackstone Group (40% stake) and Panchshil Realty (60% stake). It owns a portfolio of luxury hospitality assets in India and the Maldives, operating high-end properties under globally renowned brands such as JW Marriott, Hilton, and The Ritz-Carlton.
As of September 2024, the company’s portfolio includes 11 operational properties with 2,036 keys across luxury, upper upscale, and upscale segments. These assets are franchised by global operators like Marriott, Hilton, Minor, and Atmosphere. Despite its high-profile partnerships, the company posted a net loss of ₹137.83 crore for the six months ending September 30, 2024, with revenues of ₹875.9 crore.
IPO Details
The IPO is an entirely fresh issue, with no offer-for-sale component, and aims to raise ₹1,600 crore. Ventive plans to use the proceeds for debt repayment and related interest. The issue has reserved 75% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for Retail Investors. Employees of the company will receive a ₹30 per share discount, with ₹1 crore worth of shares reserved for them.
Valuation and Financials
The company is valued at a high P/E multiple of 90.3x and EV/EBITDA multiple of 48.5x based on the upper price band, according to SBI Securities. Ventive financial track record reflects impressive growth, with a 44.4% CAGR in revenue, 56.2% in EBITDA, and 139.3% in PAT over FY22-FY24.
Grey Market Premium (GMP)
As of today, Ventive’s shares are trading at a premium of ₹53 in the unlisted grey market, indicating positive investor sentiment ahead of the public issue.
IPO Timelines and Listing
The IPO allotment is expected to be finalized on December 26, with shares listing on the BSE and NSE on December 30. JM Financial, Axis Capital, ICICI Securities, and others are managing the issue.
With strong backing from global and domestic institutional investors, Ventive Hospitality’s IPO is one to watch closely in the coming days.
