Ventive Hospitality IPO: Share Allotment Finalised, GMP Jumps Ahead Of Listing; Check Key Updates

With the subscription and share allotment process completed, all eyes are on the listing of Ventive Hospitality Ltd., scheduled for Monday, December 30. The company's Rs 1,600 crore IPO generated robust interest across investor categories, and market buzz, coupled with a Rs 68 grey market premium (GMP), suggests a strong debut for the hospitality firm.

Subscription Status

Ventive Hospitality's mainboard IPO opened for subscription on December 20 and closed on December 24, with a price band of Rs 610 to Rs 643 per share. The public issue witnessed an overall subscription of 9.82 times. Retail Individual Investors (RIIs) subscribed 5.94 times, Non-Institutional Investors (NIIs) subscribed 13.87 times, and Qualified Institutional Buyers (QIBs) subscribed 9.08 times. The IPO attracted bids for 14.17 crore shares against an offer of 1.44 crore shares.

Grey Market Premium (GMP)

The grey market premium (GMP) for Ventive Hospitality stands at Rs 68, indicating a potential listing price of Rs 711, which translates to an 11% premium over the upper price band of Rs 643 per share.

IPO Structure and Details

The IPO consisted of a fresh issuance of approximately 2.5 crore equity shares, with the funds earmarked for debt repayment, interest payments, investment in subsidiaries, and general corporate purposes. The issue's price-to-earnings (P/E) ratio at the upper band was 40.39x, positioning it favourably against peers like Chalet Hotels (66.04x) and Indian Hotels Company (87.89x).

The share allocation for Ventive Hospitality's IPO was structured with 75% reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for retail investors, while an additional portion was earmarked for employees under preferential terms.

Key Dates and Timeline

Basis of Allotment: Finalized on Thursday, December 26.
Credit of Shares: Expected shortly after the allotment finalization.
Refunds for Unsuccessful Bidders: Processed on December 26.
Listing Date: Scheduled for Monday, December 30, on both the BSE and NSE.

About Ventive Hospitality

Ventive Hospitality is a premium hospitality brand specializing in luxury hotels and resorts. The company's assets are either operated by or franchised by global hospitality giants, including Marriott, Hilton, Minor, and Atmosphere.

Ventive Hospitality has showcased strong revenue growth over recent years, with Rs 229.2 crore in FY22, Rs 430.8 crore in FY23, and Rs 478 crore in FY24. For the six months ended September 30, 2024, the company reported revenue of Rs 372.8 crore. However, it incurred a loss of Rs 34.9 crore during this period, primarily due to recent acquisitions.

Financial Performance

Ventive Hospitality has shown steady profitability over the last three fiscal years, with total comprehensive income rising from Rs 29.7 crore in FY22 to Rs 131.2 crore in FY23, and further to Rs 166.7 crore in FY24. The current fiscal year has seen a temporary setback.

Lead Managers

The IPO is managed by a consortium of financial heavyweights, including JM Financial Ltd, Axis Capital Ltd, HSBC Securities & Capital Markets, ICICI Securities Ltd, IIFL Securities Ltd, Kotak Mahindra Capital Company Ltd, and SBI Capital Markets Ltd. Kfin Technologies Ltd serves as the registrar.