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Ventive Hospitality IPO: Date, Price, GMP & Details
Table of Contents
- Ventive Hospitality IPO - Complete Overview
- Ventive Hospitality IPO Details
- Company Financial
- The Objective of the Issue
- Peers of Ventive Hospitality Limited
- Evaluation
- IPO's Strengths
- IPO’s Weaknesses
- Ventive Hospitality IPO GMP
- Promoters and Management of Ventive Hospitality Ltd.
- IPO Lead Managers
- Dividend Policy
- Conclusion
Ventive Hospitality IPO - Complete Overview
Ventive Hospitality IPO a Mainboard IPO is a book-built issue of Rs.1600 Cr (2,48,83,358 Shares) by Ventive Hospitality Limited that was founded in February 2002. It is in the business of hospitality, specializing in business and leisure. The company concentrates mostly on operating and managing luxury hotels and resorts.
With 2,036 keys spread across various premium sectors and 11 hospitality assets in India and the Maldives, the company will be operationally ready by September 30, 2024.
Brands like Marriott, Hilton, Minor, and Atmosphere are among those that manage or franchise this type of asset collection abroad.
The company's hotels are located in the vivacious cities of Pune and Bengaluru, in locations such as Maldives, which is among the popular tourist destinations, as well as in significant spiritual and cultural centers like Varanasi.
Luxury hospitality assets already acquired by this company include JW Marriott, Pune; and luxury hospitality assets acquired thereafter comprise JW Marriott, Pune; The Ritz-Carlton, Pune; Conrad, Maldives; Anantara, Maldives; and Raaya by Atmosphere, Maldives.
This new IPO is to be launched on 20 December 2024, and the initial public offering of this upcoming IPO will end on 24 December 2024.
Ventive Hospitality IPO Details
The Rs.1600 Crore IPO comprises a wholly fresh issue of 2.49 Cr Shares. The IPO listing date is on December 30, 2024. Ventive Hospitality IPO price is Rs.610 to Rs.643.
If you want to apply for the IPO, Click Here to open a Demat Account.
Company Financial
The company’s revenue increased by 8% and PAT reduced by -526% between FYs ended 31 Mar 2024 - 31 Mar 2023.
(Amount in Crore)
Period |
30 Sep 2024 |
31 Mar 2024 |
31 Mar 2023 |
Total Assets |
- |
8,794.1 |
8,606.17 |
Total Revenue |
875.9 |
1,907.38 |
1,762.19 |
PAT |
-137.83 |
-66.75 |
15.68 |
Net Worth |
- |
3,665.83 |
3,657.15 |
Total Borrowings |
- |
3,682.13 |
3,599.66 |
Cash Flows
The cash flows for various activities are shown below:
(Amount in millions)
Net Cash Flow In Multiple Activities |
30 Sep 2024 |
31 Mar 2024 |
31 Mar 2023 |
Net Cash Flow Operating Activities |
1,308.66 |
2,650.59 |
2,152.22 |
Net Cash Flow Investing Activities |
(19,609.32) |
(1,981.23) |
108 |
Net Cash Flow Financing Activities |
16,512.20 |
(570.50) |
(2,194.47) |
Revenue Bifurcation
(Amount in millions)
Particulars |
30 Sep 2024 |
FY2024 |
FY2023 |
Revenue from hotel operations |
2,187.43 |
2,437.15 |
2,257.92 |
Revenue from room income |
1,123.29 |
1,082.10 |
962.63 |
Revenue from sale of food and beverages |
866.65 |
1,110.61 |
1,096.78 |
Revenue from other hotel services including banquet income and membership fees |
197.49 |
244.44 |
198.51 |
Revenue from annuity assets |
1,528.10 |
2,323.67 |
2,030.51 |
Revenue from rental income |
1,384.54 |
2,033.48 |
1,779.63 |
Revenue from maintenance and parking charges |
133.15 |
268.28 |
230.21 |
Revenue from other activities incidental to commercial leasing (net) |
7.28 |
14.52 |
12.65 |
Revenue from the sale of construction materials and fit-out |
3.13 |
7.39 |
8.02 |
(Source RHP)
The Objective of the Issue
-
Partial or complete repayment or prepayment of some of the company's borrowed funds.
-
To cover the interest that has accumulated on it.
-
Step-down subsidiaries, specifically Maldives Property Holdings Private Limited and SS & L Beach Private Limited, as well as the interest paid on these step-down subsidiaries through investments in them.
-
General Corporate Purposes.
Peers of Ventive Hospitality Limited
Company Name |
Face Value (Rs.) |
EPS (Rs.) |
P/E (x) |
Chalet Hotels Ltd. |
10 |
13.54 |
66.04 |
Samhi Hotels Limited |
1 |
-14.67 |
- |
Juniper Hotels Limited |
10 |
1.46 |
244.86 |
The Indian Hotels Company Limited |
1 |
8.86 |
87.89 |
Eih Limited |
2 |
10.22 |
36.68 |
Lemon Tree Hotels Ltd. |
10 |
1.88 |
69.1 |
Apeejay Surrendra Park Hotels Ltd. |
1 |
3.82 |
42.96 |
Evaluation
The Ventive Hospitality Limited IPO price band is between Rs.610 to Rs.643 for each Share.
Evaluation of P/E Ratio
Considering the FY ended 31 Mar 2024 with an EPS of Rs.15.92 from the last year, the resulting P/E ratio is 40.4x.
Considering the weighted EPS of Rs.12.54 for the last three years, the P/E ratio is 51.27x.
Comparative Analysis with Listed Peers
The average P/E Ratio of the industry is 78.22x.
Particulars |
P/E Ratio (x) |
Highest |
244.86 |
Lowest |
36.68 |
Average |
78.22 |
In simple words, the P/E ratio of this IPO (40.4x), compared with the industry’s average P/E of 78.22x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.
IPO's Strengths
-
Top-quality hospitality assets are enhanced with superb-class annuity assets. A proven history of success in India and the Maldives is driven by acquisitions and development.
-
World-renowned Promoters with global and local acumen.
-
Professional management and experienced team.
-
Track record in active asset management.
-
Strong positioning to gain from the strongest industry tailwinds.
IPO’s Weaknesses
-
8 of the 11 operating hospitality assets of the company are under operation through or under franchise from Marriott and Hilton, and such assets form approximately 78% of terms of keys in the hotel's portfolio (as of 30 September 2024). The termination or non-renewal of these agreements will affect its business and results of operations, cash flows, and financial condition adversely.
-
As referred to above, before the Acquisition Transactions, the overall income of the company on restatement basis was generated from assets located in Pune. Adverse developments on such assets and locations could result in an adverse effect on its business.
-
Since the company is in the hospitality business, it is subject to seasonal as well as cyclical fluctuations. Such cyclical laws may bring about variations in operation and consequently in cash flows.
Ventive Hospitality IPO GMP
Ventive Hospitality IPO GMP today is Rs.0 as of 17 December 2024. With the price band of Rs.643, the estimated Ventive Hospitality IPO listing price is Rs.643 while writing this information.
Ventive IPO Timetable (Tentative)
The IPO date is from 20 December to 24 December, with IPO allotment on 26 December, and refund initiation on 27 December. The IPO listing date is on 30 December 2024.
Events |
Date |
IPO Opening Date |
20 December 2024 |
IPO Closing Date |
24 December 2024 |
IPO Allotment Date |
26 December 2024 |
Refund Initiation |
27 December 2024 |
IPO Listing Date |
30 December 2024 |
IPO Other Details
With a face value of Rs.1 per Share, the Ventive IPO size is 2,48,83,358 Shares (Rs.1600 Cr) and it will be listed at BSE and NSE.
IPO Opening & Closing date |
20 December 2024 to 24 December 2024 |
Face Value |
Rs.1 per Share |
Issue Price |
Rs.610 to Rs.643. |
Lot Size |
23 Shares |
Issue Size |
2,48,83,358 Shares (Rs.1600 Cr) |
Offer for Sale |
- |
Fresh Issue |
2,48,83,358 Shares (Rs.1600 Cr) |
Listing At |
BSE, NSE |
Issue Type |
Book Built Issue IPO |
Registrar |
Kfin Technologies Limited |
Ventive Hospitality IPO Lot Size
The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (23 Shares) amounting to Rs.14,789 and 13 Lots (299 Shares) amounting to Rs.1,92,257 respectively, while for HNI investors, the minimum Lot is 14 (322 Shares) amounting to Rs.2,07,046.
Minimum Lot Investment (Retail) |
1 Lot |
Maximum Lot Investment (Retail) |
13 Lots |
S-HNI (Minimum) |
14 Lots |
S-HNI (Maximum) |
67 Lots |
B-HNI (Minimum) |
68 Lots |
IPO Reservation
Institutional Share Portion |
75% |
Retail Investors Share Portion |
10% |
Non-Institutional Shares Portion |
15% |
Promoters and Management of Ventive Hospitality Ltd.
-
Atul I. Chordia
-
Atul I. Chordia HUF
-
Premsagar Infra Realty Private Limited
-
BRE Asia ICC Holdings Ltd.
-
BREP Asia III India Holding Co. VI PTE. Limited.
Pre-Issue Promoter Shareholding |
99.59% |
Post-Issue Promoter Shareholding |
- |
IPO Lead Managers
-
JM Financial Limited
-
Axis Capital Limited
-
HSBC Securities & Capital Markets Pvt Ltd.
-
ICICI Securities Limited
-
IIFL Securities Ltd.
-
Kotak Mahindra Capital Company Limited.
-
SBI Capital Markets Limited.
Dividend Policy
The company has paid a dividend of Rs.92.59 per Share in FY23.
Conclusion
Ventive Hospitality IPO is an issue fresh of Rs.1600 crore earmarked for expanding luxury hospitality assets in India and the Maldives. It has good asset collection along with a professional management team, but the dependence on franchise agreements with brands like Marriott and Hilton may be risky. Investors should also assess the cyclical nature of the hospitality industry against the IPO valuation concerning industry peers, as one of the final notes.
Finowings IPO Analysis
Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO.
You must consult your financial advisor before making any financial decisions.
To Apply for the IPO, Click Here.
To Read the Prospectus of the Company Click Here to Download the DRHP.
DISCLAIMER: NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always discuss with an eligible financial advisor before investing.
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Frequently Asked Questions
December 26, 2024.
If you have applied for the IPO but have not been allotted the Shares by the Registrar and now looking for “ what to do if the IPO refund is not received ”, then we have covered the blog which explains the steps to get your IPO refund. Click the link to explore.
Rs.610 to Rs.643.