Ventive Hospitality IPO opens; check GMP, recommendation and other details

Ventive Hospitality IPO: The initial public offering (IPO) of high-end luxury hotels and resorts operator Ventive Hospitality opens for public subscription today, December 20, 2024. At the upper end of the price band, the company seeks to raise Rs 1,600 crore through the offering, which is an entire fresh issue of 24.9 million shares. The company announced that it raised Rs 719.55 crore from anchor investors in the bidding concluded on December 19, 2024.

 

Ventive Hospitality's public offering is available at a price band of Rs 610 to Rs 643 per share, with a lot size of 23 shares. Accordingly, investors can bid for a minimum of 23 shares and in multiples thereafter. A retail investor needs a minimum of Rs 14,789 to bid for one lot comprising 23 shares. 

 

Meanwhile, unlisted shares of Ventive Hospitality were commanding a strong premium in the grey market on Friday. The company’s shares were quoted at Rs 710 apiece in the grey market, reflecting a premium of Rs 67 or 10.42 per cent over the upper price band of Rs 643, according to sources tracking unofficial market activities.

 

The public subscription window for Ventive Hospitality IPO will close on Tuesday, December 24, 2024. Following the closure of the subscription window, the basis of the allotment of shares is expected to be finalised on Thursday, December 26, 2024, with shares credited to investors' demat accounts by Friday, December 27, 2024.

 

Shares of Ventive Hospitality will tentatively list on the BSE and NSE on Monday, December 30, 2024.

 

Kfin Technologies is the registrar for the IPO, while the book-running lead managers for the issue include JM Financial, Axis Capital, HSBC Securities & Capital Markets, ICICI Securities, IIFL Securities, Kotak Mahindra Capital Company and SBI Capital Markets.

 

As per its Red Herring Prospectus (RHP), all proceeds will be used to repay certain borrowings availed by the company and subsidiaries namely SS & L Beach Private Limited and Maldives Property Holdings Private Limited, and for other general corporate purposes.

Should you subscribe to the  Ventive Hospitality  IPO?

Anand Rathi - Subscribe for long-term

Analysts at Anand Rathi have given a 'Subscribe' rating for Ventive Hospitality IPO for the long term as they believe the company comes with a clear focus on its core strength of developing luxury and upscale hospitality assets and increasing the number of keys across our hospitality assets.

 

"The company is well-positioned to benefit from growing hospitality demand in conjunction with relatively low new supply in its key markets and growing tourism industry," the brokerage said.

 

BP Wealth- Subscribe

BP Wealth has recommended to 'Subscribe' Ventive Hospitality IPO. As per the brokerage, the company is well-positioned within India's and the Maldives' expanding market, with a portfolio of 11 luxury properties, including flagship hotels such as JW Marriott Pune, The Ritz-Carlton Pune, and Conrad Maldives.

 

"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," the report read.

 

About Ventile Hospitality

Ventive Hospitality 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.