Ventive Hospitality IPO day 2: GMP, subscription status to review. Apply or not?

Ventive Hospitality IPO: The initial public offering (IPO) of Ventive Hospitality Limited hit the Indian primary market on 20 December 2024 and will remain open until 24 December 2024. So, investors have two days to apply for the public issue. The hospitality company has fixed the Ventive Hospitality IPO price band at ₹610 to ₹643 per equity share. According to Ventive Hospitality's IPO subscription status, the book build issue received a 71% subscription on day one of bidding, which can be considered a decent response by the primary market investors as the Indian stock market crashed on Friday last week.

Meanwhile, Ventive Hospitality shares are trading at a premium in the grey market today. According to stock market observers, the company's shares are available at a premium of ₹28 in the grey market today.

Ventive Hospitality IPO GMP today

As mentioned, Ventive Hospitality IPO GMP (Grey Market Premium) today is ₹28, meaning the grey market expects around 4 per cent listing gain on one's investment. On what this Ventive Hospitality IPO GMP mean, market observers said that the grey market has remained bullish on Ventive Hospitality IPO despite the stock market crash on Friday, which is a good sign. As there is a trend reversal on Dalal Street, we may expect a strong response from the primary market investors.

Ventive Hospitality IPO subscription status

By 3:03 PM on day 2 of bidding, the public issue had been booked 1.17 times, the retail portion of the book build issue had been subscribed 1.47 times, the NII segment had been booked 0.85 times, and the QIB portion had been subscribed 1.22 times.

Ventive Hospitality IPO review

Ventive Hospitality IPO has a market capitalization of around ₹15,000 crore. In FY24, the company reported a revenue rise of 8% YoY while the PAT (Profit After Tax) decreased by over 525%.

Assigning a 'subscribe' tag to the public issue, INDSEC Securities said, "The company has outlined a strategic plan to increase its room inventory from 2,036 keys in H1FY25 to 2,403 keys by FY28. This expansion will be in a new location, diversifying the company's revenue streams beyond its existing asset base. Furthermore, all proceeds from the expansion will be directed towards debt reduction, which remains a significant cost for the company, accounting for 27% of sales in H1FY25. This debt reduction is expected to support the company in achieving profitability at the PAT level. The hospitality industry is poised for growth, driven by rising urbanization, increasing consumer spending, and a growing preference for chain-affiliated hotels among travellers. We assign a SUBSCRIBE rating to the issue regarding debt reduction, robust expansion plans, and favourable industry dynamics. However, the company's occupancy stands at 59.5% (on a proforma basis), below the industry occupancy rate of 62% and is a risk to watch out for."

However, Swastika Investmart has assigned an 'avoid' tag to the book build issue, saying, "The public issue is fully priced and leaves limited room for upside. The company has reported a rise in debt burden that has increased financial risk, whereas the pro forma number signals negative financial performance. So, investors should look at other options available in the primary market and avoid investing money in this public offer."

Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.