Ventive Hospitality Limited (VHL) operates as a hospitality asset owner, focusing primarily on luxury offerings in both business and leisure segments. Ventive Hospitality IPO is set to raise Rs 1,600 crores. The issue is entirely a fresh issue of 2.49 crore shares.
| IPO opens | December 20, 2024 |
| IPO Closes | December 24, 2024 |
| IPO Size (Rs.) | ₹1,600 Cr |
| Breakup | Fresh issue only |
| Face Value: | ₹ 1 |
| IPO Price in Rs : | ₹610 to ₹643 per share |
| Minimum Lot | 23 Shares |
| Listing At | NSE , BSE (mainboard) |
| QIB | ~75 % |
| NII Quota | ~15% |
| Retail Quota | ~10% |
| BRLM | Axis Capital, JM Financial, HSBC Securities and Capital Markets (India), ICICI Securities, IIFL Capital Services, Kotak Mahindra Capital, SBI Capital Markets |
| Registrar | K Fin Technologies |
About Ventive Hospitality
- Ventive Hospitality Limited (VHL) operates as a hospitality asset owner, with focus primarily on luxury offerings in both business and leisure segments.
- Ventive Hospitality, promoted by Pune’s Panchshil Realty and PE Blackstone, owns 2,036 operational keys, across 11 hotel properties in Pune, Bengaluru and Maldives.
- These are luxury and upscale hotels under brands Marriott, Ritz-Carlton, Anantara, Conrad, Hilton among others.
- Besides, the company owns 3.4 million sq ft of office and retail space in Pune, fetching annuity income of Rs. 500 cr annually.
- The promoters include the Panchshil Promoters and the BRE Promoters, with Panchshil Group affiliated with Panchshil Realty, a leading luxury real estate developer in India. The BRE Group is associated with Blackstone, the largest global investor in hotels, managing over 161,000 keys as of September 30, 2024.
Financials : Ventive Hospitality IPO
| Particulars (Rs. Cr) | 2024 (3) | 2024 (12) | 2023(12) | 2022(12) |
| Total Income | 388.93 | 494.71 | 441.75 | 237.51 |
| Revenue from Operations | 372.78 | 477.98 | 430.81 | 229.17 |
| Revenue Growth (%) | – | 10.95 | 87.99 | – |
| EBITDA | 180.4 | 300.56 | 250.09 | 124.6 |
| EBITDA Margin (%) | 46.38 | 60.75 | 56.61 | 52.46 |
| Net Profit for the period | -20.76 | 166.32 | 131.27 | 29.43 |
| Net Profit Margin (%) as stated | -5.34 | 33.62 | 29.72 | 12.39 |
| Share Capital | 20.87 | 10.44 | 10.44 | 10.71 |
| Net Worth | 3,792.92 | 330.55 | 163.87 | 211.46 |
| Net Borrowings | 3,422.97 | 341.69 | 365.85 | 299.99 |
| RONW (%) | -0.55 | 50.31 | 80.11 | 13.92 |
| NAV (₹) | 289.56 | 31.65 | 15.43 | 19.74 |
| Post issue Share Capital | 23.35 | |||
| FV | 1.0 | |||
| IPO price | 643.0 | |||
| EPS Fy24 | 7.1 | |||
| PE | 90.3 | |||
| EPS Fy25 (annualized) | – | |||
| PE (annualized) | – | |||
| Market cap in cr. | 15,014 | |||
| Market cap / Sales | 31.41 |
Anchors: Ventive Hospitality IPO
Ventive Hospitality Limited raised ₹719.5 crore from anchor investors. The anchor investors IPO comprises Quant Mutual Fund, Government Pension Global Fund, Allspring Global Investment LLC, Tata Absolute Return Fund, Aditya Birla India Fund, SBI General Insurance Company Limited, SBI Life Insurance Company Limited, Nuvama, JM Financial Mutual Fund and 360 One Income Opportunities Fund, among others.
Salient Points: Senores Pharmaceuticals IPO
- Only 10% of IPO for retail
- Use oof IPO Proceeds:
- Repayment/prepayment, in part or full, of certain of borrowings availed by Ventive Hospitality Ltd. (VHL): Company including payment of interest accrued thereon and Step- down Subsidiaries including the payment of interest thereon through investment in such step-down Subsidiaries.
- General corporate purposes.
- The company’s portfolio includes prestigious properties like the JW Marriott Pune, The Ritz-Carlton Pune, Conrad Maldives, Anantara Maldives, and Raaya by Atmosphere Maldives. These luxury assets contributed over 80% of the revenue from hotel operations and more than 58% of total income.
- Among listed hospitality companies in India, it ranked third in pro forma revenue for FY24 and FY23 and second for FY22.
- Further its food and beverage (F&B) offerings are highly rated; eight restaurants in Pune rank among TripAdvisor’s top ten fine dining venues as of November 2024. The F&B segment contributed approximately ~35% to hotel operations revenue during the six months ending September 30, 2024.
- Peers: Financials
| Particulars (Rs cr) | Sales | EBITDA | EBITDA (%) | Net Profit | Net Margin (%) | PE (x) | Mcap/sales | RoE (%) |
| Ventive Hospitality | 478 | 283.8 | 59.4 | 166.3 | 34.8 | 90.3 | 31.41569 | 49.7 |
| Chalet Hotels | 1,417.30 | 584.6 | 41.2 | 278.2 | 19.6 | 284 | 15.42694 | 15 |
| Samhi Hotels | 957.4 | 266.5 | 27.8 | -234.6 | – | 160 | 4.671611 | – |
| Juniper Hotels | 817.7 | 311 | 38 | 23.8 | 2.9 | 228 | 9.591782 | 0.9 |
| Apeejay Surrendra Park | 579 | 192.5 | 33.2 | 68.8 | 11.9 | 54.1 | 6.883938 | 5.7 |
- Peers: Other parameters
| Particulars | Keys (nos) | Hotels | Average Room Rate (Rs) | Average Occupancy (%) |
| Ventive Hospitality | 2,036 | 11 | 19,976.00 | 59.5 |
| Chalet Hotels | 3,052 | 10 | 10,718.40 | 72.6 |
| Samhi Hotels | 4,801 | 31 | 5,718.00 | 73 |
| Juniper Hotels | 1,895 | 7 | 10,165.00 | 75 |
| Apeejay Surrendra Park | 2,395 | 33 | 6,699.00 | 92.1 |
- Company’s average occupancy of 60% is lower than peers (70%+), but its average room rent (ARR) of Rs. 20,000 is the highest compared to listed luxury hospitality peers .
- It has 367 keys under development across 3 hotels in Varanasi, Bengaluru and Sri Lanka, to be operational by FY27-28E.
- In Aug 2024, Ventive Hospitality raised Rs. 1,450 cr though a pre-IPO placement. This was done @Rs. 618 per share, from Blackstone. Now after about 4 months, IPO price is 4% higher, which looks reasonable.
- IPO proceeds will be used for repayment of Rs. 1,400 cr debt, which will aid the bottom-line as there is Signiant interest outgo from the Rs. 3600 cr. odd debt @12% rates taken by the company to fund acquisitions. and thus company is expected to be in the black, from H2FY25 onwards
- PE (FY25 annualized) -Loss ; PE FY24 90xx
- The Company has delivered a robust Revenue/EBITDA/PAT CAGR between FY22 and FY24 which stands at 289.1%/361.6%/474.5% respectively.
- I intend to apply in Ventive Hospitality IPO. Post the IPO, promoter holding will still be 89%, indicating low dilution and confidence of promoters in the business. Debt reduction should help it to put a better show. VHL specializes in owning and operating luxury hospitality assets and has backing of Blackstone. ,
- GMP as per social media ruled about Rs. 45 (7.0%)
- This post is exploratory and educational purposes only.
- Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.