Ventive Hospitality Limited IPO (Ventive Hospitality IPO) Detail Review –
Ventive Hospitality Limited IPO (Ventive Hospitality IPO) is set to open for subscription from 20th Dec 2024 to 24th Dec 2024. In this article we will analyze the financials , strengths and weaknesses of the Ventive Hospitality Limited IPO (Ventive Hospitality IPO). Keep scrolling below to read more!
Ventive Hospitality Limited IPO (Ventive Hospitality IPO) Overview –
Established in February 2002, Ventive Hospitality Limited is in the hospitality business, primarily focusing on business and leisure segments. The company primarily focuses on developing and managing high-end luxury hotels and resorts.
As of September 30, 2024, the company has 11 operational hospitality assets in India and the Maldives, with 2,036 keys across various upscale segments.
The company’s hospitality assets are operated by or franchised by global operators such as Marriott, Hilton, Minor and Atmosphere.
The company’s hotels are located in prime areas like Pune and Bengaluru, popular tourist spots such as the Maldives, and significant spiritual and cultural centres like Varanasi.
The company’s pre-acquisition luxury hospitality asset comprises JW Marriott, Pune, and its post-acquisition luxury hospitality assets comprise JW Marriott, Pune, The Ritz-Carlton, Pune, Conrad, Maldives, Anantara, Maldives and Raaya by Atmosphere, Maldives.
As of September 30, 2024, the company had 2,791 permanent employees and employed 632 personnel on a contract basis across its hospitality assets.
Competitive Strengths
- Premium hospitality assets complemented by Grade A annuity assets
- Established track record of development and acquisition-led growth in India and the Maldives
- Renowned Promoters with global and local expertise
- Professional and experienced management team
- Proven track record of adding value through active asset management
- Well-positioned to benefit from strong industry tailwinds.
Ventive Hospitality Limited IPO (Ventive Hospitality IPO) Synopsis –
Ventive Hospitality Limited IPO (Ventive Hospitality IPO) is set to be open for subscription from 20th Dec 2024 to 24th Dec 2024, offering fresh issue of 2.49 crore shares aggregating to Rs 1,600.00 crores. This NSE,BSE IPO follows a Book Built Issue IPO with tentative listing date fixed as Monday, December 30, 2024.
The total issue size of this IPO amounts to Rs. 1,600.00 Crores. The company has allocated shares 10% to retail investors, 75% to institutional and 15% to non institutional investors.
| Particulars | Details |
| Opening Date | 20th Dec 2024 |
| Closing Date | 24th Dec 2024 |
| Lot Size | 23 Shares |
| Face Value | Rs 1 |
| IPO Size | Rs. 1,600.00 Cr |
| Fresh Issue | Rs. 1,600.00 Cr |
| IPO Price Range | Rs. 610 – 643 |
| Min. Investment | Rs. 14,789 |
| Offer for Sale (OFS) | — |
| Employee Discount | 30.00 |
| Basis of Allotment | 26th Dec 2024 |
| Refunds | 27th Dec 2024 |
| Listing Date | 30th Dec 2024 |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Ventive Hospitality Limited IPO (Ventive Hospitality IPO) Market Lot –
Ventive Hospitality Limited IPO (Ventive Hospitality IPO) minimum market lot is 23 shares with ₹14,789 application amount. The retail investors can apply up to 13 lots with 299 shares or ₹1,92,257 amount.
| Application | Lot Size | Shares | Amount |
| Retail Minimum | 1 | 21 | ₹14,789 |
| Retail Maximum | 13 | 299 | ₹1,92,257 |
| S-HNI Minimum | 14 | 322 | ₹2,07,046 |
| S-HNI Maximum | 67 | 1,541 | ₹9,90,863 |
| B-HNI Minimum | 68 | 1,564 | ₹10,05,652 |
Ventive Hospitality Limited IPO (Ventive Hospitality IPO) Book Running 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
Ventive Hospitality Limited IPO (Ventive Hospitality IPO) Promoters –
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 | – |
Ventive Hospitality Limited IPO (Ventive Hospitality IPO) Registrar to the offer –
The registrar for the Ventive Hospitality Limited IPO (Ventive Hospitality IPO) is Kfin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
The Objective Of The Issue –
The company desires to use the Net Proceeds from the Issue to fulfill its following goals:
- 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.
Key Performance Indicator –
The market capitalization of Ventive Hospitality Limited IPO (Ventive Hospitality IPO) is Rs 15,016.70 Cr.
KPI as of March 31, 2024.
| KPI | Values |
| ROE: | — |
| ROCE: | — |
| EBITDA Margin: | 60.75% |
| PAT Margin: | 33.62% |
| Debt to equity ratio: | 24.95 |
| Earning Per Share (EPS): | ₹15.92 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 50.31% |
| Net Asset Value (NAV): | ₹31.65 |
Financial Status –
Ventive Hospitality Limited’s revenue increased by 8% and profit after tax (PAT) dropped by -526% between the financial year ending with March 31, 2024 and March 31, 2023.
Below is the synopsis of the company’s financial data for the financial year that concluded on 31 Mar 2024.
The company’s total assets are Rs. 8,794.1 crore.
The company’s total revenue is Rs. 1,907.38 crore.
The company’s PAT is Rs. -66.75 crore.
The company’s net worth is Rs. 3,665.83 crore
| Period Ended | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | ||||||||||||||||||||||||||||||||||||
| Total Assets | 8,794.1 | 8,606.17 | 8,010.41 | |||||||||||||||||||||||||||||||||||||
| Revenue from operations | 875.9 | 1,907.38 | 1,762.19 | 1,197.61 | ||||||||||||||||||||||||||||||||||||
| Profit After Tax | -137.83 | -66.75 | 15.68 | -146.2 | ||||||||||||||||||||||||||||||||||||
| Net Worth | 3,665.83 | 3,657.15 | 3,441.39 | |||||||||||||||||||||||||||||||||||||
| Reserves and Surplus | ||||||||||||||||||||||||||||||||||||||||
| Total Borrowing | 3,682.13 | 3,599.66 | 3,291.07 | |||||||||||||||||||||||||||||||||||||
| Amount in ₹ Crore | ||||||||||||||||||||||||||||||||||||||||
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.
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.
Peers of Ventive Hospitality Limited IPO (Ventive Hospitality IPO) –
Ventive Hospitality Limited peer comparison with similar listed entities. (As on March 28, 2024)
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
| Chalet Hotels Limited | 13.54 | 66.04 | 15.03% | 90.08 | 1417.25 Cr. |
| Samhi Hotels Limited | (14.67) | NA | NA | 47.63 | 957.39 Cr. |
| Juniper Hotels Limited | 1.46 | 244.86 | 0.90% | 119.34 | 817.66 Cr. |
| The Indian Hotels Company Limited | 8.86 | 87.89 | 13.13% | 71.16 | 6768.75 Cr. |
| EIH Limited | 10.22 | 36.68 | 16.58% | 65.34 | 2511.27 Cr. |
| Lemon Tree Hotels Limited | 1.88 | 69.10 | 11.75% | 19.52 | 1071.12 Cr. |
| Apeejay Surrendra Park Hotels Limited | 3.82 | 42.96 | 5.74% | 56.13 | 578.97 Cr. |
Dividend Policy –
The company has paid a dividend of Rs.92.59 per Share in FY23.
Ventive Hospitality Limited IPO (Ventive Hospitality IPO) 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.
Ventive Hospitality Limited IPO (Ventive Hospitality IPO) Weakness –
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 Limited IPO (Ventive Hospitality IPO) Status –
Ventive Hospitality Limited IPO (Ventive Hospitality IPO) allotment status will be available on the Kfin Technologies Limited website. Click on this link to get allotment status.
Disclaimer –
- Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing. Subscribe only after considering fundamentals of the companies.
Conclusion –
Hope the details presented in this blog will assist you in learning about the financial performance of the company. Before making an investment in the company’s upcoming initial public offering (IPO), thoroughly research the company, its finances, business prospects, and market trends.
Also, investors should consult their financial advisor, conduct further due diligence, analyze industry trends and the competitive landscape, and consider risk factors before making an investment decision.
For all such latest information on upcoming IPOs, keep visiting our website.
