Ventive Hospitality Limited is coming up with an IPO with a fresh issue of 2.49 crore shares worth INR 1,600 crores. The company aims to repay borrowings, including interest, and support step-down subsidiaries for corporate purposes. 

Ventive Hospitality IPO – Important Dates 

Ventive Hospitality Limited IPO – Company Profile 

Ventive Hospitality Limited is a luxury hospitality asset owner, with global operators like Marriott and Hilton contributing over 80% of revenue from luxury assets. It ranks among the top hospitality companies in India by revenue and EBITDA. 

With a proven track record, Ventive Hospitality Limited has expanded its portfolio through development and acquisitions, adding 1,070 keys since 2019, including luxury and upscale assets in Bengaluru, Varanasi, and the Maldives. 

Focused on operational excellence, Ventive Hospitality Limited’s in-house asset management team collaborates with hotel operators to enhance guest experience, increase occupancy and revenue, and improve cost efficiency through strategic procurement, marketing, and operations management. 

Ventive Hospitality Ltd IPO Fundamental Analysis 

Ventive Hospitality Limited’s financial analysis reveals a mixed performance. Revenue growth reflects a positive trend, while rising liabilities and decreasing profitability, EPS, and RoNW indicate challenges. However, asset increase and improved inventory turnover show potential growth. 

• Revenue Trend: The revenue increased from ₹2,291.70 millions in March 2022 to ₹4,308.13 millions in March 2023. The revenue for the current year’s 6-month period ending September 2024 is INR 3,727.78 millions.
• Equity and Liabilities: Liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating rising reliance on debt financing. 
• Profitability: The profit after tax (PAT) has significantly decreased from ₹294.31 millions in March 2022 to ₹(207.62) millions by September 2024. This decline in profitability could be a source of concern among investors. 
• Earnings per Share (EPS): The diluted EPS has reduced from ₹2.75 in March 2022 to ₹(2.28) by September 2024, reflecting lower earnings per share for investors. 
• Return on Net Worth (RoNW): The RoNW has reduced from 13.92% to (0.55)%, indicating a decrease in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations. 
• Inventory Turnover Ratio: There’s a significant increase in the Inventory Turnover   Ratio, which might suggest faster sales or efficient inventory management. 

Ventive Hospitality IPO Financial Analysis 

Ventive Hospitality Limited IPO Peer Comparison 

Ventive Hospitality Limited, along with other major hospitality companies like Chalet Hotels and The Indian Hotels Company, exhibits varied performance across key metrics such as revenue, profitability, and return ratios, reflecting distinct growth and challenges. 

Ventive Hospitality Ltd IPO Objective 

The main objective of Ventive Hospitality Limited is to repay borrowings, including accrued interest, and provide funding for step-down subsidiaries like SS & L Beach Private Limited and Maldives Property Holdings Private Limited. 

1. Repayment/prepayment, in part or whole, of certain borrowings availed by the company and step- down Subsidiaries, namely SS & L Beach Private Limited and Maldives Property Holdings Private Limited, including payment of interest accrued thereon through investment in such step-down Subsidiaries: The company intends to utilise ₹1,400 crores from net proceeds to repay or prepay a portion of borrowings, reduce debt servicing costs, improve debt-equity ratio, and support future business growth and expansion. 

1. Repayment/prepayment of borrowings availed by the company (₹1,100 crores): The company intends to utilise INR 1,100 crores from net proceeds to repay or prepay certain borrowings, including the payment of accrued interest, to reduce debt and improve financial flexibility. 
2. Repayment/prepayment of borrowings by Step-down Subsidiaries (₹300 crores): INR 300 crores will be allocated to SS & L Beach Private Limited and Maldives Property Holdings Private Limited to repay or prepay borrowings, including interest, to optimise debt servicing and strengthen subsidiary financials. 

2. General corporate purposes: The company will deploy the balance of funds for general corporate purposes, including strategic initiatives, capital expenditure for hotel asset enhancement, funding growth opportunities, strengthening marketing, meeting working capital needs, and addressing contingencies. 

Ventive Hospitality IPO Risks And Challenges 

Ventive Hospitality Limited’s risk includes potential unanticipated liabilities, higher finance costs, and seasonal revenue fluctuations from the New Portfolio acquisition. Additionally, service quality issues or negative publicity related to third-party brands could harm operations and financial stability. 

• The company recently acquired the New Portfolio from its promoters in Fiscal 2025 and may pursue future acquisitions. The Pro Forma Financial Information is illustrative and may not reflect future financial results. 

• The company’s success depends on the performance and quality of its hospitality assets, which are operated by third-party brands like Marriott and Hilton. Any decrease in service quality or negative publicity could harm the company’s reputation, operations, and financial condition. 

• Integrating the New Portfolio may result in unanticipated liabilities, higher finance costs, and seasonal revenue fluctuations. These factors could impact profitability, cash flow, financial stability, and the anticipated returns from acquired assets. 

Ventive Hospitality Ltd IPO – Industry & Market Potential 

India’s hotel industry, driven by GDP growth, expects sector contributions to reach Rs. 21.2 tn in 2024 and Rs. 43 tn by 2034. Demand for chain-affiliated rooms is projected to rise to 167k daily by FY27. 

Domestic travel in India grew at a 13.5% CAGR, reaching 2.3 bn visits in 2019, with 1.7 bn visits in 2022, reflecting a strong recovery. The sector is expected to grow, with projections of 5 bn trips by 2030. 

India’s tourism spending is projected to rise to US$253 bn by CY27, growing 69% from US$150 bn in CY22. Rising household earnings and a young median age are driving the growth. Bengaluru and Pune rank among the top five domestic destinations. 

Ventive Hospitality Limited IPO – Type of Offer 

Ventive Hospitality Limited is coming up with an IPO with a fresh issue of 2.49 crore shares worth INR 1,600 crores. The company aims to repay borrowings, including interest, and support step-down subsidiaries for corporate purposes. 

Ventive Hospitality IPO Offer Size 

The offer size of Ventive Hospitality Limited is INR 1,600 crores, consisting of a fresh issue of 2.49 crore shares worth INR 1,600 crores. The company aims to repay borrowings, including interest, and support step-down subsidiaries for corporate purposes. 

Ventive Hospitality Limited IPO Allotment Structure 

Ventive Hospitality Limited’s allocation will be as follows: 75% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 10% for Retail Individual Investors (RII) according to SEBI regulations. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 10% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

How to apply for the Ventive Hospitality IPO?

To apply for the Ventive Hospitality Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Ventive Hospitality Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Ventive Hospitality Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check Ventive Hospitality IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Ventive Hospitality Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Ventive Hospitality Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the Ventive Hospitality Limited IPO:

● Registrar’s Website: Visit the website of KFin Technologies Limited, the registrar of the Ventive Hospitality Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Ventive Hospitality Ltd IPO Offer Registrar

The registrar for the Ventive Hospitality Limited IPO is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

KFin Technologies Limited

Selenium, Tower B, Plot No. 31 and 32, 

Gachibowli, Financial District 

Nanakramguda, Serilingampally

Hyderabad 500 032

Telangana, India

Tel: +91 40 6716 2222/18003094001

E-mail:[email protected]

Website: www.kfintech.com 

Ventive Hospitality IPO – FAQs