| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 610 to ₹ 643 | 23 | 20th Dec, 2024 – 24th Dec, 2024 | ₹ 1,600.00 Cr |
About Ventive Hospitality Ltd IPO
Ventive Hospitality Limited, incorporated in February 2002, specializes in the hospitality industry, focusing on high-end luxury hotels and resorts in the business and leisure segments. As of September 30, 2024, the company operates 11 hospitality assets across India and the Maldives, offering 2,036 keys in prime locations such as Pune, Bengaluru, the Maldives, and Varanasi. Its portfolio includes prestigious properties like JW Marriott Pune, The Ritz-Carlton Pune, Conrad Maldives, Anantara Maldives, and Raaya by Atmosphere Maldives, operated or franchised by renowned global brands like Marriott, Hilton, Minor, and Atmosphere. Ventive’s pre-acquisition assets include JW Marriott Pune, while its post-acquisition portfolio has expanded to include additional luxury properties. The company employs 2,791 permanent employees and 632 contract staff, ensuring seamless operations and an exceptional guest experience across its properties. Ventive Hospitality’s strategic focus on growth and acquisition within the luxury hospitality sector, alongside its strong portfolio, positions it as a significant player in the upscale hospitality market.
Objective of the Ventive Hospitality Ltd IPO
The company proposes to utilize the net proceeds towards funding the following objects:
- Repayment/prepayment, in part or full, of certain of borrowings availed by the company:
- For payment of interest accrued thereon; and
- Step-down subsidiaries, namely SS & L Beach Private Limited and Maldives Property Holdings Private Limited, including the payment of interest thereon through investment in such step-down subsidiaries;
- General corporate purposes.
Rationale To Ventive Hospitality Ltd IPO
Leveraging premium hospitality and annuity investments for sustainable growth
Ventive Hospitality Limited has established itself as a prominent player in the luxury hospitality sector with a portfolio of high-end hotels and resorts in key locations across India and the Maldives. The company operates 11 properties, totalling 2,036 rooms, with some of its flagship hotels including JW Marriott Pune, The Ritz-Carlton Pune, and Conrad Maldives. These luxury assets contribute to over 80% of the company’s hotel revenue, consistently commanding higher-than-average room rates, which reflects their strong market position and premium offerings. Ventive holds a dominant 64% share of the luxury hotel market in Pune, and its Maldives resorts cater to affluent global tourists, further bolstering its brand. Additionally, Ventive benefits from mixed-use developments, such as JW Marriott Pune, which include integrated office and retail spaces, providing a steady stream of rental income that enhances overall profitability. With a proven track record of successful hotel developments, strategic acquisitions, and partnerships with top global brands like Marriott and Hilton, Ventive continues to expand its footprint in desirable destinations. The company’s strong market presence and diversified asset base position it well for long-term growth. Given these factors, Ventive represents an attractive investment opportunity with strong growth potential in the luxury hospitality market.
Proven asset management with strategic growth driving performance in luxury hospitality
Ventive Hospitality Limited has a strong history of active asset management, consistently enhancing the performance of its luxury hotel portfolio. The company manages premium properties, including JW Marriott Pune, The Ritz-Carlton Pune, and Conrad Maldives, with a focus on driving higher occupancy rates, revenue generation, and cost efficiency. Key initiatives such as the opening of Tao-Fu restaurant at JW Marriott Pune have proven successful, achieving a 43.4% yield-on-cost in FY24. Ventive’s asset management team works closely with hotel operators to implement strategies that optimize operational performance and boost profitability. Centralized procurement processes further reinforce the company’s scale and operational excellence, securing favorable supplier rates and improving cost efficiencies. With a focus on continuous asset enhancement, Ventive invests in renovations and refurbishments to maximize space usage and increase long-term value. Additionally, Ventive leverages strong marketing initiatives and loyalty programs like Marriott Bonvoy and Hilton Honors to build customer loyalty and encourage repeat business. As a leader in Pune’s luxury hotel market and with strong demand in its Maldives resorts, Ventive is well-positioned for continued growth, making it an attractive investment with significant long-term potential.
Valuation of Ventive Hospitality Ltd IPO
The hospitality industry in India and the Maldives is witnessing robust growth, driven by rising domestic demand and an increase in international tourist arrivals. Ventive Hospitality Limited is well-positioned within this expanding market, with a portfolio of 11 luxury properties, including flagship hotels such as JW Marriott Pune, The Ritz-Carlton Pune, and Conrad Maldives. The company benefits from strong partnerships with globally renowned brands like JW Marriott, Hilton, and The Ritz-Carlton, which enhance its brand value and market presence. However, Ventive’s reliance on third-party operators and franchised brands for 78.05% of its keys, including Marriott and Hilton, exposes it to reputational risks and service quality concerns. Any negative impact on the reputation of these brands or failure in quality control could adversely affect the company’s financial performance. In addition to its hospitality assets, Ventive generates approximately 41% of its revenue from annuity assets leased to marquee tenants such as HSBC, Deutsche Bank, and Starbucks. This diversified revenue stream provides stable cash flows and contributes to the company’s profitability. Ventive also boasts a strong financial track record, with FY24 revenue of Rs. 4,780 million, growing at a CAGR of 44% from FY22 to FY24, an EBITDA of Rs. 2,838 million in FY24 with a CAGR of 56%, and PAT of Rs. 1,663 million in FY24, reflecting a CAGR of 138%. Despite a net loss of Rs. 208 million in H1FY25 due to recent acquisitions, the company plans to improve its financial position by utilizing net proceeds to repay part of its debt, which will help reduce finance costs and boost profitability in the future. At a P/E of 40.4x on the upper band, the company’s valuation is lower than its peers, making it an attractive investment opportunity. Furthermore, with plans to expand its footprint with projects in Varanasi, Bengaluru, and Sri Lanka, aiming to add 367 keys by FY28, Ventive is well-positioned for sustained growth. Considering its strong market presence, financial performance, and expansion plans, we recommend a “SUBSCRIBE” rating for the issue, with a medium- to long-term investment horizon.
What is the Ventive Hospitality Ltd IPO?
Ventive Hospitality IPO is a book built issue of Rs 1,600.00 crores. The issue is entirely a fresh issue of 2.49 crore shares. Login to your account now.
How to apply for the Ventive Hospitality Ltd IPO through StoxBox?
To apply for the Ventive Hospitality Ltd IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Ventive Hospitality Ltd IPO open?
Ventive Hospitality Ltd IPO is opening on 20th December 2024. Apply Now
What is the lot size of the Ventive Hospitality Ltd IPO?
The Lot Size of Ventive Hospitality Ltd IPO is 23 equity shares . Login to your account now
When is the Ventive Hospitality Ltd IPO allotment date?
The allotment Date for Ventive Hospitality Ltd IPO is 26th December 2024. Login to your account now.
When is the Ventive Hospitality Ltd IPO listing date?
The listing Date for Ventive Hospitality Ltd IPO is 30th December 2024. Login to your account now
What is the minimum investment required for the Ventive Hospitality Ltd IPO?
In the Retail segment the minimum investment required is Rs. 14,789. Login to your account now
What is the maximum investment allowed for the Ventive Hospitality Ltd IPO?
In the Retail segment the maximum investment requirement is Rs. 192,257. Login to your account now
What are the risks associated with investing in the Ventive Hospitality Ltd IPO?
- Due to its reliance on third-party operators and franchised brands for its hospitality assets, the company is vulnerable to reputational risks and service quality issues. Any negative impact on the reputation of these brands or failure in quality control systems could harm the company’s business, financial performance, and results.
- The company lacks a consolidated operating history, making it difficult to assess overall performance. It has incurred recent losses, and if newly acquired properties are not integrated, the company may continue to face financial challenges. This uncertainty raises concerns about the company’s future performance, financial stability, and ability to generate positive cash flows.
- The company’s hospitality portfolio relies heavily on third-party operators, with 78.05% of its keys operated by or franchised by Marriott and Hilton. These agreements, typically ranging from 10 to 30 years, carry the risk of termination or non-renewal, which could negatively impact revenue and operations. Additionally, the company generates significant revenue from its annuity assets, mainly in Pune. Any failure to retain tenants or adjust rental rates to market conditions could adversely affect its financial performance and business operations.
When will the Ventive Hospitality Ltd IPO shares be credited to my Demat account?
The Ventive Hospitality Ltd IPO be credited to the account on allotment date which is 27th December 2024. Login to your account now
Where can I find the Ventive Hospitality Ltd IPO prospectus?
The prospectus of Ventive Hospitality Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE
What are the important dates related to Ventive Hospitality Ltd IPO?
| IPO Open Date | Friday, December 20, 2024 |
| IPO Close Date | Tuesday, December 24, 2024 |
| Basis of Allotment | Thursday, December 26, 2024 |
| Initiation of Refunds | Friday, December 27, 2024 |
| Credit of Shares to Demat | Friday, December 27, 2024 |
| Listing Date | Monday, December 30, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on December 24, 2024 |
